Signs You Might be Hiring a Bad Business Broker

Business brokers Orange County are charged with the responsibility of connecting potential buyers with business sellers. They serve as intermediaries. However, not every broker you hire will deliver the results you need. This is why you need to learn of the signs of a bad broker before you get started. In this post, we shall be examining the main signs that tell you that you are dealing with a bad business broker.

Difficulty getting references quickly
Prior to hiring a business broker Orange County, you want to hear what recent clients have to say about the services the broker rendered. When you ask for references and your broker takes long to give you the contacts, there is a good chance you are about to get in business with the wrong person. A good broker will have numerous references at his/her fingertips. Don’t just limit yourself to the references given to you by the broker. Search for Google reviews or look the broker up on LinkedIn.

You are asked to pay upfront fees
Just because you are being asked to pay an upfront fee doesn’t mean the broker is a bad firm. However, if you are being asked to pay money upfront, you need to dig deeper to know why the fee is being required. The upfront fee may be required to cater for things like advertising and business valuation. All in all, you shouldn’t pay a lot of money as the upfront fee. The broker gets paid on commission. He should be able to explain to you clearly why an upfront fee is needed. The last thing you want is to pay the upfront fee and the broker to shelf your business for months.

You don’t understand the marketing plan
Marketing a business for sale effectively is not an easy task. There is a lot that goes into this process. Even so, you need to know how the broker will be marketing your business. If he is not willing to explain to you clearly how his strategy works, there is a good chance he will not give you the support that you need. A good business broker Orange County will have a defined and thoughtful marketing plan.

He lets the buyer dictate the process
When buying a business, there are hundreds of steps and details that are required to close the transaction. A bad business broker will leave the process to the buyer. Allowing the buyer to take charge will leave you, the seller, at a disadvantage. You need a broker that is the authority in the process. He should be willing to give you information on how he manages buyers and the entire buying process.

Other signs include getting a business valuation that is not detailed and a broker that is not as interested in your business. Remember that no business is perfect. As a matter of fact, you should be wary of business brokers Orange County who don’t have any negative reviews.

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