can either be a deal maker or breaker. If you use the wrong broker, you can get hurt significantly. The wrong broker can be a colossal waste of time or he may send you in the wrong direction or even try to work both parties. This is why you have to be very careful when you set out to hire a San Diego business broker. There are a couple of things you need to be careful of.
The broker wants total or significant fee paid upfront
There are many business brokers taking upfront fees. The total fee is, however, a combination of the upfront fee and the commission that is meant to be paid upon the sale of the business. More often than not, brokers that ask for the total fee to be paid upfront are in it for the money. After paying them, you have no guarantee they will stand by your side every step of the way. The best business broker in San Diego is the one that asks for a deposit and only requests for the commission when the sale is concluded.
The fact that the broker does not have a website simply means he is behind the times. We are in the twenty first century where the Internet is a very powerful marketing tool. It is wise to steer clear of a business broker in San Diego that doesn’t have a website. In addition to that, look at how well-written the website is. Going through the website of a broker is one of the best ways of gauging his competence.
Even the best broker may lack the proper paperwork. Do not work with a business broker in San Diego that is not licensed to sell or lease real estate in your state. An annual survey found that 94% of business brokers have real estate licenses. Even if your business does not include real estate, it is important to only hire a broker that carries the license. Needless to say, most of the unlicensed brokers are new to the business or may be con artists from out-of-state. Having a real estate license does not mean the broker will be selling real estate too. He should carry the license but only be focused on selling businesses.
Don’t go behind his back
Now that you have a reliable business broker in San Diego on your side, it is very important that you never go behind his back. There is a good chance doing so will contradict him in his efforts to help you get the best deal. Think of the broker as your attorney. Liaise with him at all times.
A business broker in San Diego will make the business buying or selling process easy. He will be responsible for most of the processes including negotiations and handling relevant paperwork. With that in mind, it is very important that you only hire a business broker that you can fully count on. The lack of trust can be a major deal breaker.