Questions You Should Ask a Business Broker before Hiring

business broker san diegoA business broker San Diego can make the sale of a business easy. This is because once you bring him on-board, he will take over the sale by marketing for you, qualifying potential buyers, handling negotiations, helping with the paperwork and more. What is even better is that he will not make a major decision without running it by you. All in all, for you to enjoy the best working relationship, you must hire the right broker. Here are the top questions you need to ask when qualifying a business broker.

Where do you work from, home or office?
The purpose of this question is to ascertain if the business broker works full time or part-time as a broker. If he works from home, it means his resources are limited because he most likely doesn’t have any trained employees working under him. Only hiring business brokers San Diego who operate from an established office means you will have access to a full team of experts and brokers.

Have you sold businesses similar to mine?
The mistake most people make when qualifying a broker is that of asking about the number of years the broker has been selling businesses. Although this is a good question, it is somewhat vague. The question you should ask is on how many businesses that are similar to yours that the broker has sold. Businesses are unique. Having sold many businesses that are similar to yours means the broker understands your industry; he has professional connections and will help you navigate the challenges that come with the sale.

How do you handle valuation?
One thing you should note is that not all business brokers San Diego will offer business valuation services. Such brokers will refer you to a third party to help with valuations. If valuation services are offered, know how it is done. There are many methods used in business valuation. Know why the broker chooses a specific method over the others.

How do your handle confidentiality?
The last thing you want is for your business secrets to leak. To prevent this, you need a business broker with a foolproof strategy of managing confidentiality. Take a look at polices the broker has in place. A great business broker San Diego will stir up interest by only providing potential buyers with teaser information.

These simple questions will direct you to the most qualified business broker in your area. The general rule here is to never settle for the first broker that comes your way. Take some time to look at what other brokers have to offer and settle for the most highly recommended firm.

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