Most people would agree that it is better to use the services of business brokers in California when you are attempting to buy or sell a business as opposed to going at it alone. By hiring a broker, you can be confident that the right amount of attention will be dedicated to the sale while you will also have someone to assist you with negotiations and ensure you get the evaluation right. However, you are only going to experience all of these benefits if you choose a broker with a great amount of care and consideration. Therefore, read on to discover some of the key questions you should ask before hiring a broker.
- How much experience do you have? There is only one place to begin and this is with experience. When it comes to experience, a lot of people simply look at the number of years the brokers have been in the industry, and that is that. However, there is a lot more to this than meets the eye. While a good number of years in the sector is important and impressive, you need to focus your efforts on relevant experience. You need to be sure that the broker has experience in selling the same sort of business as yours.
- How many businesses have you sold like mine? This moves onto the next part perfectly; you should discover how many companies the broker has sold that are like yours. Experience in dealing with similar businesses is one thing, but facts and figures are always valuable. When we say ‘businesses like yours’ it is important that you do not simply view this as business type. Take restaurants as a prime example, there is a huge difference between a large fine dining restaurant and a small budget breakfast spot.
- Do you assist with preparing the sales contracts? It is vital to thoroughly understand what you are getting for your money. An experienced broker should have the capacity to help you when it comes to drafting legal agreements and any other documents that are required. They should also have knowledge when it comes to the various ways you can structure deals. Your broker should be able to help you structure the transaction and they should put together the initial paperwork; you don’t want to be spending more money on this.
- How many listings do you have at present? It is also advisable to discover how many listings the broker has at the moment. This will help you to decipher how much time they are able to dedicate to selling your business, as it will give you a good indication of the time they have available. Of course, a high level of listings does suggest that the broker is in high demand, but you need someone that has the time available to truly assist you.
- How do you value businesses? Last but not least, it is a good idea to ask the broker how they value businesses. From their response, you should be able to determine their level of experience. If you encounter a response like ‘net income multiplied by two’ or any other cookie cutter reply, you know to look elsewhere.
To conclude, if you ask the questions that have been mentioned above, you should have no trouble finding the best business brokers in California for you. Don’t overlook the importance of this. After all, this individual is virtually going to have your sale in their hands, and thus you need to be confident that you can trust them and that they are going to do right by you.