Questions You Should Ask a Business Broker before Hiring

business broker San DiegoThe main duty of a business broker San Diego is to help you sell your business painlessly. Once you bring the business broker on board, he will take over the sale. The broker will market your business extensively, qualify potential buyers, help with negotiations, help with the paperwork and do everything that is needed to close the deal fast. The best news is that you will only pay your broker after he completes the sale. Even so, not every broker out there is worth your time. Asking the following questions will ensure that you hire the right person for the job.

Have you sold businesses that are similar to mine?
The first thing you want to do is to make sure that the business brokers San Diego that you are considering have experience in the business. All in all, having been in the business for many years is not the same as having sold businesses that are similar to yours. You want to hire a business broker that has sold a business that is the same size as yours and in the same industry as yours. He should have completed at least once sale in the last 12 months too.

How do you manage confidentiality?
If word gets out that you are selling your business, employees, lenders, suppliers and even customers will leave you. If this happens, the value of your business will nosedive. That is why you need to ask the business broker about his strategy in managing confidentiality. How will he ensure that word doesn’t get out? In addition to his strategy, make sure he will draft a legally binding non-disclosure agreement.

How much will it cost to sell?
You should not have to pay anything when selling through a business broker San Diego. Although some brokers may ask for a down payment, steer clear of brokers who ask for a big down payment. Brokers are paid on commission. The commission is a percentage of the total selling price. This means that if they don’t help you sell your business you will not need to pay them anything.

Will you help with business valuation?
Knowing how much your business is worth is very important. Most business brokers San Diego will be able to help with valuation. Ask about the business valuation method that the business broker will use and how much the service will cost.

What records will you need?
The lack of proper business records is the key reason why business sales fall apart. Ask the business broker for a record of all the records that will be required. Yes it is possible to sell a business with less than adequate records but selling will be much easier when you have all the records.

Can you provide references?
Last but not least, you need to talk to the most recent clients that the business broker San Diego worked with. Doing so will help you know if the broker is good at his job or not. Take note of what recent clients are most disappointed about.

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