Important Information You Should Know Before Hiring a Business Broker

Finding a business broker San Diego is not hard. You will get dozens of hits with a simple Google search. Hiring a competent business broker, however, takes work. It is for this reason that we have taken the time to discuss a number of points you should know about before hiring.

Experience selling your type of business

When hiring business brokers San Diego most people only focus on the experience that the broker has. While this is important, you should note that real estate agents who double as business brokers will also share information on their experience. The best way to ask this question is to ask the broker about the experience he has selling businesses like yours. Such a broker will already have contacts of buyers who might be interested in your type of business and will also be more efficient in business valuation, pricing and confidentiality management.

Commission charged

Business brokers get paid on commission. This means you will not have to pay them until they sell your business. All in all, it is good to note that some brokers may ask for down payment. The down payment should not be too much. The commission charged should also be fair. Always remember that the commission is the percentage of the total selling price that you will have to pay the broker. For example, if his commission is 10% and you sell your business for a million dollar you will have to pay him $100,000. Always take the time to negotiate the commission before signing any contract.

Valuation and pricing process

The business valuation process and pricing strategy of the business broker San Diego is also something you should check early. In business valuation the broker should be able to justify his valuation approach and give you the list of factors he considers before setting a selling price.

Listing terms

A common mistake most business owners make is that of not reading the business broker’s contract keenly. As a result some business owners end up locked in a contract with an incompetent business broker. Don’t be so distracted by the promises of the broker that you forget to read the contract. Always inquire about the contract length and conditions in which the contract can be terminated. You should also avoid committing to long term contracts. Start with a 90 days contract to gauge the competence of the broker.

Selling a business with the help of business brokers San Diego is the wisest thing to do. You, however, need to hire a broker that has the experience selling your type of business and one that you can trust. Don’t just hire for the sake of hiring.

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