Business brokers Orange County know how to sell a business fast and to the right buyer. This is their area of specialty and most of them are good in what they do. Even so, this does not mean you commit to just any broker that comes your way. To avoid regrets down the road, there are a couple of things you should do prior to picking a broker.
Don’t ignore his experience
Getting professional training is one thing but doing what you are trained to do is a completely different thing. In addition to making sure the business broker Orange County you are about to hire has the necessary training, your main focus needs to be on his experience. How many years has he been in business and how many businesses that are similar to yours has he sold? The idea here is to avoid the trial and error. Working with an inexperienced broker is often worse than selling on your own.
Take his commission seriously
The commission a business broker will charge is a percentage of the total selling price. If the commission is 10% and you sell your business for a million dollars, you will be paying the broker a whopping $100,000. That will definitely bite into your profits. Try and negotiate on the commission as much as you can. It is possible for a broker to take his commission to less than 5%. You should also understand that with the more prominent business brokers Orange County, negotiating on the commission will be hard.
Consider his track record
Having being in the business for years is not enough. You need to take a look at his track record. How many businesses did he close in the last 12 months? If he hasn’t sold a single business in years, then this is not the right person to bring onboard. You also need to read reviews on the broker. Are his past clients happy?
Know his specialty
You will be amazed by how many real estate agents double as business brokers. Even though it is good to hire a broker with a real estate license when selling a business, it is imperative that you hire the broker who works full-time as a business broker. The last thing you want is to work with someone with divided attention.
Get everything in writing
Always get everything in writing. The contract you sign is what will serve as your proof. If there is no agreement with all the agreed terms, your claims will only be taken as ‘he said she said’. In addition to that, you must refrain from overcommitting. You don’t have to sign a contract that will lock you in for a year. You can negotiate for a 90 day contract. That way, you will be able to leave if the business broker Orange County is incapable of delivering on his promises.