A business broker is like a matchmaker for businesses. They help connect people who want to sell their business with those looking to buy one. Just as a real estate agent helps you sell your house, a business broker guides you through the process of selling your business.
Selling a business can be complex. It’s not just about finding a buyer; it’s about getting the best deal. A business broker brings in experience, market knowledge, and a network of potential buyers. They handle the nitty-gritty, like valuing your business, marketing it, negotiating offers, and managing paperwork.
Using a broker can save you time, reduce stress, and often get you a better price. Plus, they can keep the sale confidential, which is crucial if you don’t want customers or competitors to know you’re selling. In short, a broker makes selling your business smoother, faster, and more profitable.
No matter which way you spin it, selling a business is a big deal. For business founders, it represents a big step forward, a passing on of the proverbial baton. It’s critical that you get that process just right, to get the return that you deserve on your investment and set yourself up for future projects.
A core piece in that puzzle consists of finding the right business broker. As we get closer to the end of 2024, here’s what you need to know as you embark on your search.
Think about your needs & priorities
Before you start looking for potential candidates, it’s important that you take a moment to think about your needs when it comes to the sale.
Are you looking to market your business to a niche audience? Do you care more about who takes over the business than how much you get for it? How quickly do you want to get the process finished?
Answering these kinds of questions will leave you with a much better idea of what you’re looking for, standing you in good stead for the next stages.
Carry out initial research
Once you know more about the specific kind of service you’re looking for, you can start to look for brokers such as Dexterity Partners. Try to carry out a more general search online, while also asking around your professional network for suggestions.
If you don’t want to be super public about the sale of your business, make sure that you carry out this research surreptitiously. While it often won’t really matter, in some cases it can be beneficial to keep the sale from your clients and partners until slightly later on in the process.
Check their past clients
Once you’ve found a few potential business brokers that look roughly suitable, take a look at some of their past clients. There are lots of different kinds of brokers, and ideally, you want to identify one who has experience selling businesses in the same niche as yours.
Not only will this mean that they’re better prepared to navigate the regulatory landscape, but they’ll also be connected to a more appropriate network of potential buyers. This should speed up the sale process, while also increasing the likelihood that you find a buyer who is willing to pay a competitive price.
Check reviews
Finally, once you’ve found an option or two that seems pretty much perfect, check their reviews to see how prior clients judged their overall service.
You want to make sure that the broker you go with is easy and straightforward to deal with, operates using a transparent pricing structure, and is there to answer important questions when it matters.
Finding a suitable business broker to help you out is no easy task, but it’s absolutely worth taking the time to get it just right. A good broker will make the sales process a lot easier, while also ensuring that you get the amount that you deserve for all your hard work.
What Else You Need to Know About Finding a Business Broker
Finding the right business broker is crucial, but there are a few more things to consider before making your decision:
Ask About Their Marketing Strategy
Different brokers have different approaches to marketing a business for sale. Ask how they plan to market your business. Will they use online listings, tap into their network, or target specific buyers?
A solid marketing plan can make a huge difference in how quickly and successfully your business sells.
Understand Their Fee Structure
Brokers typically charge a commission, often a percentage of the sale price. Make sure you fully understand their fee structure before signing any agreements. Some brokers might also charge upfront fees or have additional costs for marketing. Clarify everything to avoid surprises later on.
Gauge Their Communication Style
Communication is key throughout the selling process. Ensure your broker communicates clearly and regularly. You don’t want to be left in the dark about potential buyers or progress.
A broker who understands your preferred communication style—whether frequent updates or only major milestones—will make the process smoother.
Inquire About Confidentiality Practices
Maintaining confidentiality is critical when selling a business. Ask potential brokers how they handle sensitive information and what measures they take to keep your sale discreet.
A slip-up could disrupt operations or cause unnecessary stress among employees or clients.
Trust Your Instincts
Finally, trust your gut feeling. If something feels off, whether it’s a lack of transparency or a mismatch in values, don’t ignore it.
The right broker should make you feel confident and comfortable throughout the entire process. If you’re unsure, it’s okay to keep looking until you find the perfect fit.
Taking these extra steps will help ensure that you find a broker who not only meets your needs but exceeds your expectations, making the sale of your business as successful and stress-free as possible.
