As a business owner, you’ve likely worn many hats. However, when it comes to selling your business, it’s best to hand over the reins to someone with experience. Working with a business broker will help you get the best price and selling timeline for your business.
Here are some tips to help you find the best business broker to sell your company.
Ask for Network Referrals
First, ask your business network for referrals. There’s value in being able to talk to someone you know about their experience with a broker. These referrals will give you better insights into reliable broker options, as well as the selling process.
It’s important to be discreet when asking for a referral. Rather than posting your request publically on social media, send targeted private messages. If vendors and employees find out that you’re selling your business, it can cause unrest.
Start Your Search Well in Advance
Whether you opt for a referral or search online to find the best business brokers in the USA, start looking as soon as possible. Even with an experienced broker, selling a business can take upward of a year. The sooner you start the process, the sooner you’ll get a sale.
Look for Proven, Relevant Experience
Experience matters when working with a broker. Look for a company with years of proven experience, with reviews and testimonials to back it up. While the years of experience are important, relevance is even more so.
Many brokers take a broad approach to selling companies. However, there’s value in working with someone who has targeted experience in your niche or industry. These brokers are more likely to have connections that will be interested in your business. As with running a business, the generalist approach can only take you so far.
Be Mindful of Pricing Models and Commitment Levels
Pricing and commitment are two very important areas of focus when finding a business broker to sell your company. The standard approach to pricing is a commission-based fee. There may be a few other small charges along the way, but this is the generally accepted practice. If you find a broker who wants a big deposit upfront, run in the other direction.
Commitment levels are another thing to keep in mind. As selling a company can take a long time, your broker might want you to sign an exclusivity contract. This contract ensures that you commit to working with them for a minimum period before reaching out to another broker— this is standard when working with brokers. However, you can negotiate for how long you’ll commit. Signing a commitment contract for three to six months is reasonable; signing for a year or more is not.
Dive Into a Marketing Plan
When you get down to it, selling a business is like selling anything—as such, having a strong marketing plan is vital for success.
Talk to your potential broker about how they handle marketing your business. Your broker should be open about their marketing approach before you sign a contract and should commit to delivering a marketing plan during the early days of your involvement. This plan should cover everything from the target demographic to advertising strategies.
Listen to Your Instincts
Trust your instincts when meeting with a broker. If they seem overly optimistic with their promises or pushy, don’t commit. If you have any hesitation at all, listen to that instinct. You’ll likely be working with your broker for months. Find someone who is clear about milestones and communication and makes you feel at ease.
Finding the right business broker can be the difference between selling your business this year or liquidating your assets out of frustration. Take your time, do your due diligence, and choose the right broker.