About 20% of businesses fail within the first year. Selling your business while it’s still viable can ensure that you don’t join this unfortunate group. Hiring a broker who specializes in selling small businesses should help you sell quickly and at the best price possible.
How does this work? To hire a great business broker, you need to do more than search for “business broker near me” on Google. Let’s dive into the details of choosing the right broker.
What Is a Business Broker?
A business broker is a third party who helps you buy or sell a business. Their job is to help you find buyers, negotiate with them, and make sure that the terms of the sale are fair for both parties.
How Much Does a “Business Broker Near Me” Charge?
Most business brokers charge between 5 and 10 percent of the sales price of a business. Their rates vary by company. The seller typically pays the fee.
Some brokers charge a one-time flat fee, while others may base their commission on other factors, like time spent negotiating the transaction.
How Do You Find a Business Broker?
If you’re having trouble finding someone in your area who fits your criteria, search online. Type words like “business broker” and then add your city. Your search query should look like a San Francisco business broker or New York City business broker.
You can also use LinkedIn or Facebook groups related to small businesses. Professional companies, such as fusionadvantage.com/, are also great places to look.
After contacting the potential brokers, schedule face-to-face meetings at their offices. That way, they can show off their portfolios of past work. Choose which one seems best matched with what you’re looking for.
How to Choose a Business Broker
You should choose a business broker who has experience selling businesses like yours in your local market. If you run an IT consultancy, for example, look for a broker with expertise in IT consulting. This will help ensure that your broker knows the market and can get you a fair price.
If your business is unique or very specialized, consider hiring a generalist broker who can bring in specialists if necessary.
The broker should also be able to explain how the business valuation process works. They should want to know what your business does, how much it earns, and other details about its operations. The more information you provide, the better they can determine a fair price for your company.
Remember to check the Better Business Bureau’s website to see if there are any complaints against your potential broker.
Hire a Business Broker
Now that you know about business brokers, it’ll be easier to make a good decision when you search for a “business broker near me.”
If you’re thinking of selling your business, it’s important to have an experienced professional who knows how the market works. A business broker will provide you with the expertise and access needed to successfully sell your company on your timeline.
Our business articles can provide you with more information to make smart decisions for your business. Read a few before you consider selling.