Business brokers Orange County are highly sort after because of the experience in the business of selling companies. They are the people you need to eliminate the guesswork and smooth the entire process. However, before you commit to the first broker that comes your way, you have to account for the costs that come with working with a broker. This post takes a look at these costs.
Across the globe, the majority of business brokers work on commission. The commission you can expect from a business broker Orange County can be as low as 5% or as high as 15%. There are no set limits on how much a broker can charge for his services. The important point to remember is that this commission will be a percentage of the selling price. That means if you sell your business for a million dollars, you will pay the broker a whopping $100,000 if his commission is 10%.
The commission charged by the business brokers Orange County is negotiable. For example, if the sale involves freehold property like commercial premises or factors plus the business, the commission can vary. Most brokerage firms accept a lower commission on the sale of property and a higher commission on the sale of business, itself. The reason for this is because selling a business is far more complicated than selling property.
Marketing costs and contract
It is not always that a broker will commit to the commission alone. Other times, you will be required to pay a down payment. This is meant to cater for marketing and contract costs. The majority of brokers out there will require that you share the advertising and marketing costs. These costs will vary depending on the nature of your company.
The above are just some of the costs you can expect to deal with when working with a business broker Orange County. All in all, it is good to always remember that not every broker out there will deliver on his promises. To make sure there are no hidden costs or draconian terms, ensure that you read the contract keenly prior to committing. It also pays to work with a lawyer to help you understand the contract terms better. You should also know if you will be charged for business valuation. Most business brokers will offer valuation reports free of charge. If you will be charged for the service, know upfront how much that service will cost.
Business brokers San Diego are always an important part of the team when selling a business. They will not only help you with marketing but also with buyer qualification, confidentiality management, business valuation and so much more. It is imperative that you hire the right person for the job if you want to enjoy the full benefits of working with a broker. In this article, we shall be looking at the things you need to do in your search for a good business broker.
Ask your business contacts
The first thing you have to do when searching for a business broker San Diego is to contact your business contacts. There is a very good chance that someone in your professional circles has worked with a broker or knows someone who worked with a business broker recently. Start with your accountant then move on to your lawyers and then to your business associates. The responses you get from these people will point you in the right direction. All in all, you have to be careful not to leak information on the sale of your business to the wrong people. The last thing you want is news of the sale to get to your employees, suppliers and lenders. If any of them leave you, the value of your business will go down.
Speak to several brokers
The next thing you have to do is to talk to several business brokers San Diego. The worst mistake you can make is that of committing to the first broker that is recommended to you. Doing so will keep you from checking what other brokers have to offer thus leading to frustrations along the way. The best way forward is to speak to several brokers and know what they will bring to the table. That way, you will reduce the risk of being overcharged or working with a broker who is incompetent.
Even after zeroing in on the top brokers to work with, you still should not commit yet. Ask them for references. This should be the people the broker has worked with in the recent past. Contact several references and get to know what they have to say about the services rendered. Would they be happy recommending the business broker San Diego to anyone else?
Hiring business brokers San Diego is not something that you should rush. You need to dig deeper into the firm you are about to work with. Take a look at their experience, specialty, their recent clients, the reputation they have garnered over the years, service fees, communication skills, and so much more. You should only hire someone you have confidence in.