If you are at a stage in your online business where you want to sell it, it is important that you hire a business broker for online stores San Diego. While selling on your own might seem like a good idea, it is not. This is because you are inexperienced in the sale of businesses, your emotions might cloud your judgement and maintaining confidentiality will be a lot harder. But should you hire just any business broker that comes your way? Definitely not. Here are key questions you should ask before hiring.
Is the broker legit?
Unfortunately, in every industry, there are people who pretend to be legitimate but their goal is to exploit the unsuspecting clients. To check if a broker is legit, start by checking their online presence. Do they have a website and other online professional profiles such as a LinkedIn profile? Do they have a company name and address? Can you find reviews about them? The right business broker for online stores San Diego must also be willing to provide references. Take time to contact at least three of the references and pay attention to what they are saying about the services of the business broker in San Diego.
Do they help with business valuation and pricing?
The last thing you want is to work with a broker that is only involved in the marketing part and nothing else. To save time and avoid confusion, you need a business broker that offers full service. Make sure they offer business valuation services and take note of how they value a business. Keep in mind that business valuation takes into consideration numerous factors. There is no one formula that works for all types of businesses. To give a great valuation, a broker will first want to find out more about your business.
The majority of small online businesses are valued on a multiple of seller discretionary earnings. This refers to the net profit of a business with the expenses that benefit the owner but are not pertinent to the business ‘added back’.
Do they value confidentiality?
Keeping the sale private is very important. You don’t want customers, staff or competitors to find out about the potential sale. A professional business broker will hold confidentiality in high regard and use every measure available to keep the sale a secret. Interested buyers will also be required to demonstrate that they have the finances to buy the business and they must sign a non-disclosure agreement before any information is shared with them.
These are the most important questions you should ask before hiring a business broker for online stores in San Diego. Always pick someone that has lots of experience selling businesses that are similar to yours.