How to Find the Right Business Broker?
- BY Akshay Arora
Feature Writer, BusinessEx
- Jan 05,2018
- 10 Mins Read
Selling a business is a big step as an entrepreneur has put all the efforts in building it so it is essential that entrepreneur gets the best price for it. In order to get the best deal, it is mandatory to find a business broker who understands your needs and find you the best deal available. But only a few business brokers are able to find the perfect deal so you must know how to find the right business broker.
There are few steps that you need to carry out in finding the right business broker:
Find a platform
The process of finding the right business broker begins with finding a platform where you can seek applications from brokers who are interested in your request for buying and selling of a business. A one-stop solution where you can find a broker as well as sell or buy a business is BusinessEx. You can prepare a list of brokers from using services of a platform like BusinessEx. This is important in finding the right broker.
Beware of Generalists
The next thing that you must know is that there are varied business brokers who will be interested in your deal but don’t just hire them as you need to do a proper research before that. You may find many brokers on the search engines like Google but that will not make sure that they are right for you as each broker is specialised in different fields.
Once you cut short the list then you need to do a background check on their character, the deals that they have already carried out, services, experience, etc. This will give you a better understanding of which broker is not a fraud and which broker can get you the best deal.
Once you have a few brokers left after doing all the above steps then you should ask your queries in form of questions like:
- How much they value your business?
- How many deals that they had already carried out?
- In how much time they can buy/sell a business for you?
- What is their commission percentage?
- Do you have connections with lawyers, accountants, other professionals?
There are many questions that you need to know but these are the basic ones and you must get their answers in order to judge which broker suits your needs.
You must ensure that the broker does not disclose the information about your deal as it may affect the function of your business. For example, you are planning to sell your retail business then if the information is disclosed before the deal is done then suppliers, employees, etc may have certain issues with it. It is better that you hire a broker who maintains the confidentiality of your business. BusinessEx is the best platform to sell/buy the business as it fully maintains confidentiality and also provides valuation services.
While negotiating the deal with the broker, must make sure that you have the upper hand in the agreement terms. The general commission charge of a broker is 10-15 per cent of the deal which can be negotiated. The common mistake made by entrepreneurs is that they pay in advance so make sure while negotiating you don’t pay the entire fee in advance.
There are many ways of finding a business broker but to find the right one, you need to follow these steps. The best low-cost solution of buying and selling a business is BusinessEx which also helps you in finding the business broker if needed.
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