Questions to ask a Business Broker BEFORE you retain their services
You are most likely looking for a professional to represent your business for sale. This is probably a large value transaction, possibly the largest so far in your career and time is certainly money in this instance. The fees for representation can appear enormous and the entire profession is new to most business sellers. North Carolina has no licensing requirements for Business Brokers and they range from the best business consultants you could possibly meet to some that have no training and are frankly out to try to turn a fast buck. It is important that the Business Broker you select be experienced, ethical, and efficient. We hope these questions will assist you in identifying the right firm and the right broker to represent you in your transaction.
1. How long have you been a business broker?
2. What qualifies you to be a business broker? (IBBA membership and CBI designation is a must)
3. What did you do before becoming a business broker?
4. Have you ever purchased a business?
5. Have you ever sold a business of your own?
6. Have you ever bought or sold a business with the assistance of a Business Broker?
7. How many clients do you currently have?
8. How many clients will you accept at any given time?
9. Are you a member of the International Business Brokers Association [IBBA]?
10. Are you a Certified Business Intermediary [CBI]?
11. Are you a member of the American Business Brokers Association [ABBA]?
12. Are you an Accredited Business Intermediary [ABI]?
13. Are you a sole practitioner or associated with a firm?
14. Is your business listed with the Better Business Bureau?
15. Do you co-broker? If not, why??
16. What was the last business you sold where you split commission?
17. Who can I speak with that has sold their business with you?
18. Who can I speak with that bought a business from one of your clients?
19. What are the highest and lowest valued businesses you have represented? Did they sell? How long did it take?
20. What are your fees? Is there a retainer? How much? Why?
21. What is the fee charged at closing?
22. Why should I hire a Business Broker?
23. How many clients have not renewed their representation agreement with you at the end of the term? Why?
24. How will you market my business?
25. How long will it take to find a buyer for my business?
26. How will you handle confidentiality with potential buyers?
27. What documents will you need from me?
28. How often will I hear from you?
29. What buyer prequalification will you perform?
30. Who will determine the asking price for my business?
31. What experience do you have with performing business valuations?
32. What methods do you use in valuations, when and why?
33. Who will have final authority on accepting or rejecting an offer?
34. What clients have you worked with in my industry or similar to my business in sales or type?
35. What is your definition of an ideal seller client?
36. What is your definition of an ideal buyer?
37. What other Business Brokers do you recommend?
ENLIGN Business Broker's answers to these questions are available free on the companies website www.enlign.com article "Answers from a Business Broker"
Interviewing a Business Broker - To learn more about this author, visit Jeff Snell's Website.
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Leanne Hoagland Smith
Are you or your business where you want to be? Are you facing constant struggles in business or life in general? Would you like to "unlock" those obstacles keeping you from greater business or personal success? As your results partner, we can work together to unlock those desired results by achieving tomorrow's solutions today. Let’s use your strengths for real change through proven and affordable solutions where the real problems are identified. Are you seeking loyal customers, great attitudes, increased sales, improved profitability or just some sleep filled nights? Then we should talk because my clients have experienced exactly those types of results. Learn more about customer loyalty at http://www.processspec ialist.com/customer-loyalty.htm Give me a call 219.759.5601 for a free strategy session. I look forward to speaking with you. P.S. If you are seeking a motivational speaker, sales trainer or small business expert that will leave your audience smiling and remembering, please feel free to contact me at 219.759.5601. - Visit Leanne Hoagland Smith's Website |
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