How to select a Business Broker?

If you are a businessperson thinking of selling your company, the business broker you decide to work with is an important decision to make. Your relationship with this professional may last several months so it is important that you choose wisely. This article will go over some of the main criteria to think about before you finally select the business broker to work with.
Be honest with the business broker
Discuss what your goals and objectives are. This will assist the business intermediary immensely during the planning phase. If you have a time constraint or a pricing issue that is important to you, share it with the business brokerage early in the process.

Ask the broker how they will market your business
Selling a business is not like selling real estate. If a broker simply expect to list your business for sale on MLS and not do much else, then you're not dealing with a professional with much experience in selling businesses

Ask the business broker to assist you in pricing the business
Ask them to defend the price they think your business will sell for and how they come to that figure. Ask them to work with your chartered accountant during the valuation process. If they resist or say that this is not standard then you should deal with someone else.

Is the broker knowledgeable about your business or industry
Some business brokers will gladly list any business that comes their way. As a business owner though you should ask the intermediary if they are familiar with your industry and how they think they can go about selling your business.

How will the broker keep the business sale confidential
The majority of businesses that get listed for sale prefer to stay discreet so as to not alert staff, vendors or customers that the business is selling. Ask the business broker how they will keep the sale confidential. Ensure that they have a formal confidentiality agreement signed by all prospective business buyers before they release any sensitive information about the business.

Ensure that they return your phone calls!
This seems fairly straightforward but you would be surprised at the number of business brokerage ‘professionals' who are terrible at getting back to clients and prospective buyers. Timing is everything in a business sale. Please ensure the business brokerage you work with is prompt and consistent.

Work with someone that has credentials
When you decide to sell your business you should try to work with someone who has a combination of experience and credentials in selling businesses. Business brokerage can be a complicated profession so you want to choose someone that knows their craft.

Work with a broker that knows the market
If you are from Toronto or southern Ontario, Canada then you should deal with a business broker that covers that marketplace.

Work with a business broker that can help to prepare your business for sale
Sometimes businesses need some polish before they are formally listed for sale. A reputable business broker will give you valuable insight on some things you can do to make your business more salable.