4 Questions You Must Ask a Business Broker

business broker Orange CountyA business broker Orange County has your best interest at heart. This is for the simple reason that his interests and yours are intertwined. The sooner he sells your business the sooner he gets paid. The more money he helps you make in the sale the more money he earns. Even so, it is good to note that not all brokers out there have your best interest at heart. Prior to hiring any service provider, you need to ask them the following questions.

Have you sold businesses like mine?
The purpose of this question is to make sure that the broker has the experience you need to sell fast and profitably. If his focus has only been on multimillion dollar businesses and yours is only worth a few hundred thousand, the broker will not give you the service you need. The business brokers Orange County that you consider must have sold businesses that are of the same size as yours and must also have experience working with businesses in your industry.

What is your commission?
Business brokers are paid a commission. This is a percentage of the total selling price. This question will help you determine how much you will end up paying at the end of the deal. The lower the commission is the better. The business broker commission can be as low as 5% or as high as 15% or even more. The good news is that you can always negotiate with the broker to get a better commission. Even so, you should note that most reputable brokers will be unwilling to bring their commission down.

Are there any extra costs?
With some business brokers Orange County, you will be required to pay an upfront fee. This is meant to cover for the initial expenses such as marketing and getting the business ready for sale. Ask the broker about the other costs. All in all, you must steer clear of any business broker that asks for huge upfront fee.

Can you provide me with references?
Last but not least, you need to ask the broker for references. The only way of telling if a business broker Orange County is reliable is by talking to his recent clients. You will not be able to do this if the broker is unwilling to provide you with references. Ask for at least five references and contact them. If the responses you get are negative, you should consider using a different brokerage firm.

These are essential questions that you must ask before bringing a business broker onboard. Even so, the broker you end up hiring must be the one you feel the most comfortable working with. Don’t hire someone just for the sake of hiring.

Business broker Orange County