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Selecting A Business Broker in California
Know up front what your expectations are in a business broker who will be selling your business. Make sure you discuss and convey those expectations to the business broker you select. Direct and open communications about expectations and other issues with your business broker is critical in selling your business.
Ask the business broker how they are going to advertise and get the word out about your business for sale. Make sure they allocate an adequate budget for advertising and marketing to sell your business.
Know up front what your expectations are in a business broker who will be selling your business. Make sure you discuss and convey those expectations to the business broker you select. Direct and open communications about expectations and other issues with your business broker is critical in selling your business.
Ask the business broker how they are going to advertise and get the word out about your business for sale. Make sure they allocate an adequate budget for advertising and marketing to sell your business.
Have the business broker determine the valuation of your business. Ask them about a cash price vs. a price with terms involved. This is very important since over 70% of California businesses never sell - usually due to - too high of price for the marketplace or unrealistic terms and conditions on selling the business. There are many ways to structure a deal - you need an business broker who can discuss these variances with you.
If the sale of your business is confidential - you need to know how the business broker is going to keep the sale of your business quiet while still marketing it. Make sure the business broker is using a professional Confidentiality Agreement form for your protection and keeps these on file at all times.
Make sure the business broker you select has prepared your business for marketplace - are all the financials and tax returns in good order and understandable. Do you have all documents ready for review like your lease agreement, equipment leases, and contracts with vendors, etc? Time kills deals and if your business broker doesn’t have it together, business buyers will leave fast for another business for sale!
Make sure the business broker you select to sell your business is comfortable with selling your type, location, and size of business. It amazes us to see how many owners pick a business broker quickly out of the yellow pages without doing much homework on the business broker. This is probably one of the most important decisions you will make for your business - make sure you pick the right business broker to sell your business.
Returning phone calls is important! Make sure the business broker you select is good about getting back promptly to potential buyers. You would be surprised how many business brokers delay calling back buyers - remember the sale of your business is in “competition” with the sale of thousands of other California businesses - you want to make sure your business broker is responsive in getting back to potential buyers.
Time kills deals. Make sure the business broker you select is responsive in getting things accomplished and moving things along. Deals tend to go south when parties aren’t moving forward on a deal at all times.
Communication with your business broker is important - make sure you let your business broker know what your expectations are for letting you know what’s going on i.e. once a week updates, only call when something is going on etc. - its up to you, however we think it is important that at least weekly dialogues between seller and business broker is important so you can see how things are progressing. Find out how many buyers have called, feedback on any buyers who have expressed an interest in your business for sale etc.
Make sure you pick a business broker who spends the needed time on your business for sale. Some business brokers take on too many listings knowing that some may not sell - it’s a numbers game to them. You need someone who understands your business, what your expectations are, and who can properly get your business sold!
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Testimonials |
Got a great response, overwelming on my FAST TRACK Advertising Program ad on the Fast Food Restaurant - a ton of calls and emails from responsive, motivated business buyers - thank you . . . and sold the Deli Restaurant recently because of your program. The FAST TRACK Advertising Program is the way I will go with all my future listings in advertising in your media.
Abe Pianalto, VIP Realty, Broker |
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Sold the trucking company! The buyer paid a total of $1.1 Million, $325,000 plus re-financing the tractors and trailers. Thanks for getting us the buyer of this business!
Harold Graves, Ares Capital Group, Inc. |
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