Business Broker Orange County - Mistakes to Avoid When Using a Business Broker Orange County

Business broker Orange County will help you manage your expectations and enable you to get the best deal when selling a business. However, there are several mistakes that people make when selling their business through a broker. The purpose of this post is to enlighten you on these mistakes so that you can avoid them.

Failing to compare

The main mistake people make is that of not looking at what other business brokers Orange County are bringing to the table. They hence end up getting the second best services. Before you hire a broker, it is wise to look at the range of services that other brokerage firms are offering. This will help determine the average price of working with them as well as know how their unique services will benefit you.

Not reading the contract

Another common mistake made mostly by people selling their business for the first time is that of failing to go through the clauses in the contract. There have been so many cases of people being trapped in contracts they can’t get out of. Other times, the contract requires you to pay the agreed commission even if you sell through a different brokerage firm or on your own. These are all unacceptable terms. Prior to signing the contract, it is very important that you spend time reading through the terms and conditions. You should also consider involving an independent attorney to help with the reviews. If any term is not clear or acceptable, ask for clarification or request the broker to change or remove it. If he refuses, consider working with another business broker Orange County.

Not negotiating the fees

When working with an Orange County business broker, never assume that you are shopping in a supermarket where the prices are fixed. You can always negotiate with your business broker to get a better deal. Don’t always take the 10% commission. It is possible to bring that commission as low as 5%. Other times, brokers will require you to pay a commission as high as 20%. This will depend on how difficult it is to sell your business. Don’t just take that deal. Negotiate. You will be amazed by how much you can save once you haggle with the broker.

Not getting a business valuation

A business valuation is important when setting a price for your business. Buyers will also want to see the valuation report when considering your business. In addition to getting the report from the business broker, hire an independent contractor for the valuation. A well detailed valuation will help you sell faster.

Taking too long to sell

Last but not least, sellers make the mistake of taking too long to sell their business. At times, the value of the business goes down. Their business brokers Orange County may also abandon them because they will feel they are not serious sellers. You need to sell your business when it is at its peak. Once you put your business on the market, don’t take too long to sell.

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