Once you start your search for a business broker for distribution companies San Diego, you will be surprised by the sheer number of brokerage firms that are available. While most of these firms will entice you with all manner of offers, only a handful of them will deliver on their promise. This is why you need to know what to look for in a broker before hiring. Here are the four most important considerations you should make.
Recent track record
Having such qualifications as the right training and being certified is not enough. This is because selling a business is more of an art than a science. The process of achieving favorable results is not set in stone. Issues will arise and it is up to the business broker for distribution companies San Diego to find solutions. That is why as much as having the right qualification is important, you need to focus more on the track record of a business broker.
Asking the following questions will help you find out a lot about the success level and experience of a business broker:
- How many companies like mine have you sold in the last 12 months?
- How long does it take, on average, to close a listing?
- How many listings do you represent? This helps you know if the broker is a major player.
What recent clients are saying
The best source of information about a service provider is the clients he recently worked for. Start with the testimonials on the broker’s website. What are most clients happy about? You also need to ask the broker for references. These should be the names of clients they work within the last 6 to 12 months. Contact at least three references and ask if they would recommend the broker. Next, you need to jump on review sites. Pay attention to what recent clients are saying. What were they most satisfied and disappointed about?
How they price a business
Does the business broker offer valuation services? If they do, pay attention to how they price a business. You need to ask about the valuation method they use, the percentage of variance they advise and the average percentage of asking price they closed at in the last 12 months.
How they market
Last but not least, you need to know how they market a business for sale. How do they manage confidentiality? Which platforms do they use to market listings? The right broker should do more than simply post an ad on their brokerage website. They should use other channels to reach more potential buyers. Don’t forget to ask about their strategy in qualifying buyers.