Hiring an experienced broker while selling or buying a business is essential, as it ensures that the entire process goes smoothly, and you get the best deal possible. However, one might be wondering, how do I get the right business broker? And, should a license be a requirement when hiring a business broker?
For status, only 16 states in the US require business brokers to be licensed. And, the State of Nevada requires business brokers to get a real estate license, while the state of Illinois requires business brokers to be registered. The rest of the states in the US allow business brokers to operate without any form of license. The best thing to do is to check with your state to see if it requires a business broker to be licensed.
However, you don’t have to worry in case you realize that it’s not necessary for business brokers in your state to obtain a license. Just because the business broker isn’t licensed doesn’t mean that they cannot offer professional services, as you would get from a licensed one.
How to choose the right business broker
An experienced business broker will bring tons of experience and expertise, which can significantly improve the seller’s or buyer’s ability to attract prospects, negotiate, overcome challenges, and get a good deal. With that said, it’s very easy to find a business broker. However, finding a business broker who is ideal for your sale can be a challenge.
Besides, apart from ensuring the broker has a good reputation and track record in the industry, you will need a business broker who’s aligned with your expectations and goals. Please note that it might take you some time to get the right business broker. However, that time will be worth it in the end—once you close the deal.
Key attributes to consider when choosing a business broker
The first step towards finding the right business broker like Orlando Business Broker is understanding the attributes to look for. Today, the industry is flooded with fake and inexperienced business brokers. However, you can find the best brokers—if you know where to look. Here are a few characteristics to consider:
This is the first, and most important thing to consider—a business broker who’s experienced in selling businesses similar to yours or buying businesses like the one you want to buy. Even the most seasoned business brokers can have a challenge in closing the deal—just because they don’t have the experience needed in your industry.
The right business broker should be experienced in selling or buying businesses in your industry, as well as within your price range. Without such knowledge, the marketing or prospecting and pricing efforts of the business broker will not meet the sales objectives.
Hiring a “Lone Ranger” business broker is a disaster waiting to happen. Some business brokers claim that they can handle every step of the process, from listing to closing the deal without any assistance. You should not consider hiring such a business broker—at all costs.
Professional business brokers should have already-established networks with accountants, lawyers, as well as other local professionals. Besides, they shouldn’t have a challenge in contacting them whenever they require their assistance. Even when you opt to use the services of your accountant or lawyer, it’s a good thing to know that the business broker has an established relationship with such professionals.
Yes, honesty—this is key in any business transaction. Pricing is one of the major challenges that most people face when selling a business. However, most business brokers are not honest—they don’t disclose the true value of the business to their clients—for whatever reason.
Rather, the business brokers tell their clients what they want to hear—and this can drag the sale process for months, and even years. However, experienced brokers are honest about the value of the business, pricing, as well as any other important issue—regardless of whether the client wants to hear it or not.
Once you hire the business broker, ensure that he or she is honest, responsive, and open to you. Besides, a good business broker should be willing to take their time to listen and understand their client and goals. Therefore, you should ensure that you are comfortable with how your business broker communicates with you—it should be in a manner that leaves you satisfied.
Please note that selling a business is not a one-day deal—it takes time. You can go for days or weeks without getting any prospects. Thus, you should ensure that you put clear communication strategies in place. That is, how often and when you will communicate with your business broker.
Always trust your gut, regardless of the broker’s experience and track record. At the end of the day, you want to hire a business broker with whom you can work with. Although you might have come from different backgrounds, you need to work as a team with your business broker. Yes, partnerships are important when in the business world. So, if you see something that you are not OK with, just go ahead with the search process—you’ll come across the right business broker.