Tips on how to hire a business broker

[businessbrokers]

Hello everyone,

# Only choose a business broker firm that has been in business for three years or more.

# Choose a business broker who is familiar with your industry, so that he or she knows what a fair price is and where prospective buyers will be.

# Choose a business broker that has other affiliated offices, advertises other business, and has sales people. You want a broker who is successful and is well known.

# When trying to decide if you should hire a broker, the broker should present you with a detailed advertising and marketing plan so that you know exactly what you will be getting, and if it will be good enough.

# The potential business broker should also give you a marketing plan and ideas on how to sell your business quickly and how to get the most money for your business. This should be done before you hire the broker.

[SethKravitz]

I would go more specific than that.

1. Don't agree to anything longer than a 3 month exclusivity clause. You don't want to be locked into a bad broker who isn't doing anything.

2. Go with a broker who has solid track record of selling companies in your exact industry. For example, if they sell auto dealerships mostly, why would you trust them to sell your bakery?

3. Don't use a broker who refuses to tell you anything about the potential buyers because of "privacy concerns".

4. Search major search engines for their name extensively, check their business registration with their state's secretary of state, ask if they are listed with the BBB, etc..... You need to try to dig up anything potentially negative about their brokerage before you sign.