Business owners’ approach in finding a broker to market and sell their business they have built reminded me of a story that should bring some perspective.
One day a man new to his area became quite ill. After several attempts to self-medicate, he opened the phone book and found the nearest doctor. After the visit, the doctor asked the gentlemen how he decided to come to his particular practice when there were so many other choices. The gentleman shared that he simply opened the phone book and chose the most convenient location. Shocked, the doctor reminded the gentleman health is not a commodity and recommended a more thorough search for a primary care provider that has proven credentials.
Quite often business owners follow a similar approach when finding a business broker. Here are a few questions that you should use to interview a Business Broker when making a selection for a professional to market and sell your business.
Questions to ask a Business Broker
- Have you ever owned your own business before?
- How many businesses do you attempt to market and sell in a year?
- When was the last closing date on a business you helped broker?
- What methods do you use to attract buyers for businesses you list?
- How much support do you offer the buyer to get financing if required?
These 5 simple questions will help you find the best business broker for your needs. If they are going to receive a commission, let’s make sure they earn it.
Beyond the expertise of a Business Broker you should also make sure that their style and personality is a good fit. You will want a balance of experience on the finance and business end with exceptional people skills. Problem solving and negotiation are critical competencies that a skilled Business Broker must master. You don’t want to scare off a potential buyer nor do you want to leave money on the table.
As the business owner, you will want your sole focus on running the business and driving profitability. The Business Broker whom you select must conduct the marketing and all other tasks associated with negotiating a deal that makes it all the way to closing. Select properly and let them work their magic. That is what they are paid to do.
More from this contributor:
Seller Financing: Make It Part of the deal
12 Step Proven Process For Selling Businesses
Finding A Good Business Broker – The First Meeting With A Business Broker