Business Brokers Orange County - Warning Signs when Picking Business Brokers in Orange County

Business brokers in Orange County have the training, the experience and the connections to help you sell your business comfortably. Their support will not only help you concentrate on the core operations of your business but further help you get the best possible deal. All in all, you should not just hire the first broker that comes your way. Considering the raising number of unscrupulous brokers, it is good to know of the warning signs you need to keep an eye on. Below are some of the signs that raise a red flag.

The broker doesn’t have a grasp of business valuation

Although you need to hire a professional to help with business valuation, the business broker in Orange County you hire should have some idea of what business valuation is all about. You don’t want a broker who will pull figures out of the thin air and start marketing your business using those figures. What he tells buyers has to be backed with solid data else he will not be convincing enough. A good broker should be able to explain the business valuation principals clearly. He should also ask questions on your suppliers, customer base, employees and other commercial matters that are relevant to the valuation.

He claims he can achieve your asking price easily or get you a better price

The selling price of a business is typically based on business valuation. You have to be very wary of brokers who give you an estimate without even doing any research. He should be able to explain to you clearly why he feels he can achieve your asking price or get you a better deal. The explanation needs to be based on facts. Avoid business brokers in Orange County who are overly optimistic. If they are not paying note to the reality of a business sale, they probably don’t have any experience selling businesses.

He wants upfront payment

It is normal for adept business brokers to ask for a retainer. However, you should think twice before surrendering your money to a broker all because he is asking you for an upfront free. Always remember that the broker is paid on commission. This means if he doesn’t deliver what he promises, you will not give him a dime. Be very wary of an Orange County business broker who requests for a significant commission or fee to be paid up front. There is no circumstance that can cause the fee to go above 25%.

He requests for a longer exclusivity period

If the business broker in Orange County requests that you give him more than 6 months of exclusivity, they have very little confidence in finding buyers for your business. Be ready to switch brokers if you feel the broker doesn’t have much confidence in you.

When choosing a business broker in Orange County, you need to choose the one you fill you have the most confidence in. Always follow your instincts. If you don’t trust them, chances are they will disappoint.

Business broker Orange County