Business brokers Orange County are a huge addition to the team when selling a business. The reason for this is because you will have a team on your side that has sold businesses before and knows how to solve common issues. Even so, you must not have the wrong idea about a business broker. This article is here to help you understand the basic role of a broker.
He is a representative
The first point you need to understand about a business broker Orange County is that he plays the role of a representative. His duty is not to sell your business by himself but rather to link you with the best buyer available. Although the business broker will market and show your business to potential buyers, he will not make any major decision without asking you first. After a business valuation, the broker will show you the findings, make the recommendations on the selling price and it is your job to give the green light. Avoid any broker who forces you into things as such a broker will disadvantage you.
Every business is unique
Just because the broker helped your friend sell his business within three months doesn’t mean he will do the same for you. Businesses are unique in that they have their own ups and downs. Yes the business of your friend was similar to yours but yours might take longer to sell. Business brokers Orange County will let you know what they will do for you and keep up updated on their progress. There is no guarantee that your business will be sold within a certain period of time. There are many factors that will affect the timeline.
Fees are not the same
Most brokers charge their services on commission. The commission can be as low as 5% or as high as 15%. There are no set rules regarding how much a broker can charge for his services. Prior to hiring, try and negotiate a better fee with your broker. You must also make sure that the fees are made clear and included in the contract before you start working with the broker.
He might not have every answer
Last but not least, you will need to do your own due diligence. One fact most people forget is that a business broker will not always have the answer about your state of business. Before you start selling, contact your CPA. He will help review your financial information. The idea here is to learn as much as you can about your business before selling.
The above are basic pieces of information you should have before hiring business brokers Orange County. Hire someone you have confidence in.