4 Questions to Ask Before Hiring a Business Broker

After deciding to sell your business, you can choose to do it by yourself or hire a broker. However, handling transaction details requires expert knowledge. Without it, you’re likely to lose a good client or a lucrative deal. Most entrepreneurs cannot get a good investor interested in their company. That is because they are unaware of the suitable places to advertise it. Hence, hire a professional to represent your interests. Ensure the professional is highly qualified for this work. Employing the wrong broker will deny you a sale or a good profit. Ask the following questions in your search for a trustworthy broker.

Do you have experience selling businesses like mine?

Every industry has a unique business model. Hence, you cannot sell a restaurant like a salon. You will need different approaches to calculate the valuations due to their unique attributes. The advertising strategy will also be distinct because you must highlight their attractive qualities. Opt for a San Antonio business broker that has sold businesses in your industry. Such an expert is aware of the challenges likely to arise while serving your interests. Hence, the specialist can guarantee quality services.

How many businesses have you sold so far?

This work should be committed to business brokers in San Antonio with an exceptional track record. The professionals should possess undeniable proof of the enterprises they sold. Don’t assume every broker has sold a company before. Some are new entrants in the market searching for their first gig. Since their skills haven’t been tested, you cannot be sure they will deliver quality services. Remember, this work is sensitive, so it requires experienced specialists. Brokers that sold many businesses are the best choice.

How do you value businesses?

By asking this vital question, you can uncover the broker’s experience. Keep in mind a wrong valuation will rob you of profits and good buyers. Never deal with a San Antonio broker that gives you a quick response after asking this query. That screams inexperience and lack of knowledge. A qualified professional will also ask you many questions before calculating the enterprise’s value. That is because many factors affect its worth. The valuation process will also depend on the size of your company. So, opt for an expert that takes time to determine your company’s value.

How will you keep my business sale process confidential?

Every broker knows selling a business requires utmost confidentiality. Whenever customers, suppliers, or employees perceive the sale, they’re likely to look for alternatives. That is because, after the sale, the inevitable changes might render them redundant. If some choose to leave before closing the deal, your company’s value will nosedive. That is why business brokers in San Antonio must keep the entire process a secret. Before hiring an expert, ask them how they will retain the confidentiality of the sale. Give the contract to a broker with the most reasonable answer. Most brokers will sign a confidentiality agreement to gain the trust of entrepreneurs. This document will give you a sense of security.

Mark Drake is the author of this article on business broker San Diego.