Business broker San Diego will see to it that you sell your business faster and at the best possible price. The broker will further enable you to concentrate on the core operations of your business while the business is being sold. He will also help with confidentiality management. However, it is important to note that not every broker out there will have your best interests at heart. Some brokers lack the experience and the knowhow. Learning how to hire the right broker is the most important thing you can do when planning on selling a business. Below are the important considerations you need to make.
Fee structure
Business brokers San Diego get paid on commission. This is a percentage of the total selling price. The commission can be as low as 4% or more than 15%. It all depends on the nature of your business, its current condition as well as the reputation of the business broker. You need to remember that the commission charged will bite into your profits. Negotiate the lowest possible commission. It is good to note that some of the most experienced and reliable brokerage firms will be unwilling to negotiate on their commission. Still on the fee structure, you need to know how much down payment will be required.
Specialty
Which area does the business broker San Diego specialize in. The broker you hire should have experience selling businesses in your industry. He must also have sold a business that is similar to yours in size. Make sure that the broker works full time as a business broker. There are some professionals who double as business brokers on their free time. While hiring them might be cheaper, the quality of services you get will be lacking.
Track record
A business broker may have the experience, the fee structure that works for you and specialize in your industry but if he has never sold a single business in the past, chances are he will end up messing things up for you. To be sure that he will help sell your business, you have to take a look at the number of businesses that he has sold in the last year. The more sales he has made in the last year the better.
References
Can the business broker San Diego provide letters of reference? References will prove to you that he has actually sold businesses and that he has happy clients.
Availability
Last but not least, you have to make sure that the business brokers San Diego you are considering are available. You can do this by taking a look at the number of clients he is currently working with. The broker should have the time to represent your business properly.