How You Know You Are Dealing with a Bad Business Broker

business broker Orange CountyBusiness brokers Orange County are charged with the responsibility of selling businesses on behalf of a seller. They can also be hired to help buyers find the best business to purchase. The main challenge, however, is that not every broker out there has your best interest at heart. If you are worried you have been working with the wrong person, here are some of the signs you should look for.

He is reluctant to give you references
The best way of determining if a business broker Orange County is competent is to talk to his recent clients. If the broker you are contacting seems to be unwilling to give you references that you can contact, you should consider finding a different broker. The reason why he doesn’t want to give you references is probably because the quality of services he renders is questionable and he doesn’t want his last clients to cost him a new catch.

He charges huge upfront fees
It is normal today for a business broker to charge an upfront fee. This is meant to show commitment and also to meet the initial costs which include business valuation and marketing. If the broker asks for a huge upfront fee, you should move away from him. Business brokers are paid on commission. Know why the broker needs the upfront fee. If a clear explanation is not given, there is a good chance you are about to be ripped off.

He doesn’t explain his marketing plan
Any good business broker Orange County will be willing to explain his marketing plan to you and in a way that you understand. If he tells you not to worry about it, chances are you will end up with regrets. Bad business brokers never have a defined and thoughtful marketing plan. Such brokers only rely on listings. The problem with this strategy is that your business will remain on the market for a long time. You need a broker that uses multiple channels to market your business.

You don’t get a detailed business valuation
The last thing you want is to work with business brokers Orange County that are out to make money at your expense. If the business valuation report they give you is not detailed, there is a catch. You need to know exactly how much your business is worth before making any decision. There is no harm in requesting an additional valuation report from an independent business appraiser. This will help you know if your broker is exploiting you or not.

Business brokers Orange County