Business brokers San Diego understand the fact that selling a business is a complex task. That is why they are always ready to take over the sale process so as to lift the burden off the shoulders of business owners. All in all, the fact that a business broker understands your plight doesn’t mean he is right for you. There are so many misfits out there. To be sure you are hiring the right person for the job, you have to consider the following qualities.
Prior to hiring a business broker San Diego, you ought to make sure that he understands the ups and downs of the industry your business is based in. Yes he might have sold many businesses that are of the same size to yours but were they in your industry? If the answer is no, you have to think twice before hiring. The reason for this is because industry familiarity is what enables the broker to market to the relevant buyers and also set the best price after a business valuation. A broker who is familiar with your industry will from the start filter out the buyers who are unlikely to buy your business.
One fact most business owners forget about when hiring a broker is that their business brokers are simply their representatives. They will have to liaise with you throughout the sale. What this really means is that you will be working closely with him most of the time. You, therefore, need to hire someone that you can establish a healthy relationship with, easily. Make time to meet up with the business brokers San Diego several times prior to hiring. That way, you will have a feel of their personality and capabilities. The more research you do into a business broker the more trust you will be able to build.
Size does matter
Selling a business valued at $50 million is very different from selling one that is valued at $100,000. Don’t hire a broker who will be overwhelmed by the size of your business. Your business might be too big or too small for him. Having experience in the sector is not enough. Take some time to see the size of businesses the broker has sold in the past. If yours is too far outside the bracket, you should consider looking for another business broker San Diego.
Business brokers charge a commission for their services. Some will ask for an upfront fee which is meant to cover the initial expenses. Take time to understand all the costs and negotiate on the commission. Remember that the commission is a percentage of the total selling price. If the commission is too big, you will end up losing more after the sale.
Working with business brokers San Diego is not something you should ever rush. You have to be very vigilant when hiring a service provider. The aforementioned list is not exhaustive but it will surely get you started in the right direction.