Business brokers San Diego play a very important role in the sale of businesses. They not only help the seller find qualified buyers but also help with every stage of the sale from marketing to negotiations and more. The problem, however, is that not every broker out there has your best interest at heart. You have to be very wary of money-minded brokers. Here are some important things you need to do when deciding on the broker to hire.
What are your qualifications?
Nobody wants to hire a business broker San Diego who lacks the necessary qualifications. This is why the number one question you need to ask is that on the broker’s qualifications. The right broker should be a Certified Business Intermediary, be a member of the International Business Brokers Association and have a lot of experience as a business broker. Although not necessary, if you plan on selling the land on which your business sits on, you will want to work with a broker that has a real estate license. That way you will not have to hire a realtor in addition to the business broker when selling your company.
What is your track record?
You don’t want to hire an experienced broker who has never sold a business in his life. You want a broker that has a good track record in the sale of businesses. This means he must have sold several businesses in the last year. You also want to make sure that the broker has sold businesses that are similar to yours in the recent past. It also doesn’t hurt to ask about how long their previous listings were on the market before they ended in closed sales. The idea here is to find a business broker San Diego that has a good record of selling businesses and within a fair timeframe.
Can you provide a list of your references?
Never take his word for it. When hiring a business broker, you need to listen to what his recent clients are saying about him. This means asking for references and contacting at least five clients that have worked with the broker. Know what they think about the broker. Too many negative comments are a red flag.
How do you price businesses?
A business valuation is needed before setting the asking price. You need to know how the business brokers San Diego will be pricing your business. Know the method he uses to establish the asking price and the percentage variance that the broker advises. A good broker will not base the business valuation report on textbook calculations but also factor in the current market trends.
These questions are key to finding the most qualified business broker to take on your case. Whenever possible, hire a business broker that offers financing assistance to buyers. That will help speed up the sale.