Using the services of a business broker allows you to avoid the pitfalls of a poorly constructed deal. They can help save you time, bring you the proper customers, and help you protect your company’s privacy during the sale process.
But, if you hire the wrong business broker, you may find yourself stranded in a sea of frustration. Don’t make a poor decision, check out this list of six questions to ask your potential sell-side broker.
What Valuation Strategies Do You Use?
There are many different valuation strategies to use when trying to assess a business. Some brokers prefer to start by looking at the historical earnings of your business and measuring your cash flow to date.
Other brokers might want to start by breaking down the assets of your business like the equipment, patents, and real estate that you own. A qualified broker will choose to use multiple valuation models when evaluating your business, knowing that different aspects will be valued by different kinds of buyers.
How Will You Keep My Sale Confidential?
Keeping your sale confidential until you are ready to let your competitors and employees know what’s going on is extremely important. Your workforce will be needed to ensure that your sale goes through successfully. You don’t want them to get wind of the sale from the wrong people.
A qualified business broker understands the importance of maintaining the confidentiality of a listing. They will take precautions to ensure only the most qualified and interested buyers know that your business is on the market.
They can also help you develop a plan for notifying your employees of a sale while reinforcing their place with the company going into the future.
How Many Potential Buyers are in Your Rolodex?
A business broker with a lot of potential buyers in their Rolodex will give more initial exposure to your listing. They can reach out to people that they have already vetted in the past and who they know are qualified and looking for the right business to purchase.
How Many Listings Have You Taken On?
Not only is it important for you to know how many listings your business broker has taken on in their lifetime from an experience perspective, but it’s also important to know how many they have on their plate at the current time.
Ideally, you don’t want to hire a business broker who is too busy. You need someone who has the time and energy to dedicate to your case. But, you also may be wary that if they don’t have a lot going on, it may be because they just aren’t that good at what they do. For that reason, it may be best to hire a broker that works as part of a team.
How Many People are on Your Team?
Most of the time, when you hire a business broker, what you’re really hiring is a business brokerage. Knowing that there is a qualified team working on negotiating the right sale for you should give you peace of mind.
At Dolan Sales, we have an excellent team of brokers working hard to ensure you get top dollar for your business. Contact us for a free consultation today.