Business brokers San Diego have been around for many years. They play the important role of simplifying the business sale process. Their key responsibility is to help you sell fast and ensure that you are not exploited in any way by the buyers or sellers. Even so, before you make up your mind to work with a business broker, there are a couple of things you need to understand.
He is just a representative
Just because the business broker San Diego handles the marketing part does not mean he can sell your business the way he wants. He is your representative. This means you can ask him to do what you want with no questions asked. Therefore, before you give him the green light, make sure that he understands your unique requirements in the sale of your company. For example, if you don’t want the new owner to fire the existing employees, the broker must market the business with that in mind. The point to understand here is that the broker only does what you direct him to do only that he relies on his experience to give you the best results.
You pay him an agreed commission
Another important point you need to understand is that the broker is only paid on commission. This means that if he abandons you before you can sell, you will not be required to pay him a dime. However, it is important to make it clear what fees will be involved. The commission paid is a percentage of the selling price. This can be as low as 5% or less or as high as 15% or more. You need to negotiate the most appropriate percentage before you hire the broker.
The terms of service may trap you
When hiring business brokers San Diego, the first thing they will do is to evaluate your business and make sure that you are a serious seller. Afterwards, you will be required to sign a contract. Before signing the document, you have to pay attention to the terms and conditions outlined in the contract. Some brokers will include terms that will entangle you. For example, some broker may add a clause that says if you sell your business in the next year, you will have to pay the agreed commission even if the buyer was not brought by them. Ask an independent lawyer to help you review the terms and conditions.
He is responsible for maintaining confidentiality
Since the broker is the person marketing your business and dealing with buyers, it is his job to maintain confidentiality. He should draft a foolproof confidentiality agreement that buyers have to sign before information is disclosed to them.
Other things the business broker San Diego should be able to do is to help with business valuation as well as help you manage your expectations. Your duty is to spend a considerable amount of time researching different brokerage firms until you find the one that best appeals to your company. Never hire someone who has not sold businesses that are similar to yours in the last year.