How to Assess the Expertise and Experience of a Business Broker

Business brokers Orange County have more experience in the purchase and sale of a business than you. They are without doubt the best teams to bring onboard when getting ready to exit. The problem, however, is that not all brokers out there have what it takes to help with the sale. Some are inexperienced while others don’t really take their job seriously. Considering your business is something you have worked hard to grow, you don’t want to work with a broker who will drain your profits or cause the sale to stagnate. To find the best broker to work with, you need to consider the following things.

Their fee structure
It is obvious that working with a business broker Orange County will not be free. You will need to pay the broker for his services. Although most brokers will ask for a commission which is paid once the sale is completed, some go as far as asking for huge down payments while with others you will still have to pay their commission even if you don’t sell the business through their firm.

You have to be very careful when choosing a broker. Go through the terms of service keenly and ensure that everything you agreed on is put in writing. In addition to that, you must take some time to negotiate with the broker. The fact that his commission is 10% doesn’t mean it can’t get to 5% or even lower.

Their specialty
Another very important thing you will need to consider is the specialty of the business brokers Orange County that you are thinking of hiring. It is not uncommon for a real estate agent to present himself to you as a business broker. However, the fact that he doesn’t work full time as a broker simply means you will have to deal with divided attention. Always work with a broker who has sold your type of business in the recent past and one who works full time as a business broker.

Track record
Never take a broker’s word for it. Take some time to dig deeper into what he is telling you. For starters, you need to make sure that he has sold businesses that are similar to yours in the recent past. Second, he should be able to provide you with references that you can contact. Third, you need to consider the number of clients the broker is currently working with. If he has no clients, you need to think twice about hiring him. On the other hand, if he has too many clients, there is a good chance he is overwhelmed.

These few considerations will help you move in the right direction when searching for a good business broker Orange County to work with. Whenever possible, go with a broker who has owned a business before. That way he will be able to understand your plight clearly.

Business brokers Orange County