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Questions for Selecting a Business Broker or Intermediary

Guest post by: Greg Caruso

Article Overview: When looking to buy or sell a business in Maryland or elsewhere it is very important to select the right professionals. A key professional for a market business purchase or sale is the business broker or intermediary. They will help you find the right business, prepare a valuation for the business sale or purchase, and negotiate your business purchase.

Questions for Selecting a Business Broker or Intermediary

When looking to buy or sell a business in Maryland or elsewhere it is very important to select the right professionals. A key professional for a market business purchase or sale is the business broker or intermediary. They will help you find the right business, prepare a valuation for the business sale or purchase, and negotiate your business purchase.

References and Community Involvement:

• Does the intermediary have written references? Can you call the references? (Don’t ever let an intermediary or broker tell you that you can’t talk to references because of confidentiality. Think about it, they must have some satisfied closed customers)
• Does the intermediary belong to local business, charitable groups, churches that indicate a place in the community?
• Does the Intermediary Belong to Industry Associations that have ethical codes?



Questions to help you determine if the intermediary is knowledgeable:

• What is the intermediary's formal education?
• Has the intermediary obtained continuing education in his field of practice?
• Does the intermediary belong to associations that relate to his field of practice?
• Has the intermediary authored or spoken professionally on his areas of expertise



Questions to help you determine if the intermediary has experience:

• Has the intermediary ever owned a business? Was it sold?
• How long has the intermediary been brokering?
• Has the intermediary sold a business like yours?
• Does the intermediary have any related experiences from selling other businesses?
• Ask them to explain a typical transaction? Does that sound reasonable?
• Did the intermediaries past experiences relate to his role here?





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gcaruso@successfulexits.com




Questions that can help you determine if the intermediary is organized and has a system:

• Ask about how they would find a buyer?
• How they screen prospects?
• Does the intermediary work for a firm? If so what does that add to the process?


Compatibility:

Through all of the above questions you should be thinking about experience, integrity, and ability to get the job done.

The Crux of the Matter:

If you are not 100% comfortable with your intermediary, interview another one. Keep looking. Sooner or later the broker or intermediary is going to have to tell you bad news and how to overcome it. If you don’t trust the intermediary, this is even more difficult.

Related Articles
  What is a Business Broker?
  Ethical Expectation You Should Expect From Your Business Broker
  Caveat Emptor – Let the “seller” beware
  10 things to expect from your business intermediary
  Considering selling your business? Here are a few things to consider

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