In business, things are sold all the time. Some sales are small and can be handled by the individual owners. Sometimes, however, one may need a broker in order to close the deal. Brokers sell all kinds of things from houses to cars and even businesses. The article below aims at giving tips on identifying the best broker dealer.
One of the very important things is the experience of the person you are dealing with. Especially if the business you are selling is big, it is best you deal with a person with experience. An experienced person the ropes of the industry and will move the process along much faster. Make sure that the person you hire has had experience selling a business similar to yours in the past.
It is important to know where they are stationed. Ask them whether they work from an office or from their homes. Neither of these scenarios is wrong just that one has more advantage than the other. If they work from home, you are assured they have all the time to deal with your business. An office, however, has more brokers and their combined efforts bring more results.
You already know the value of your business but it is important you ask how they value the business. This will be a great way of telling how experienced they really are. Some will say it is net income multiplied by two. These are usually inexperienced people and it is best to run the other way before having your hard built business thrown off a cliff.
You may not want your clients and competition that you are selling the business. Clients may take it as a red flag and move on to another company. Ask the broker how they will make sure that both competition and clients do not find out about the sale. A good agent should wait until they find the best client and have them sign a non-disclosure agreement.
You do not want to land a agent that no one wants to work with. Ask your agent how many buyers they can get for your business. A good broker will tell you about a dozen. This goes to show they know them on a personal level and will sell. One who tells you tens of thousands probably has none or does not have an idea of who to approach.
The last thing you want is to leave a business you have worked so hard for a person who does not know what they are doing. Put out a little test. Blurt out a ridiculous but reasonable amount you want the business to go for. After the valuation, the broker should be able to reason with you and tell you why it will not work. If they agree automatically, run the other way.
Finally, ask them how many listings they have apart from yours. The more they have, the more likely you are to incur a loss. This is because they pick a lot of listings and try their luck on whichever one will sell. This shows that they do not put much effort into it.
One of the very important things is the experience of the person you are dealing with. Especially if the business you are selling is big, it is best you deal with a person with experience. An experienced person the ropes of the industry and will move the process along much faster. Make sure that the person you hire has had experience selling a business similar to yours in the past.
It is important to know where they are stationed. Ask them whether they work from an office or from their homes. Neither of these scenarios is wrong just that one has more advantage than the other. If they work from home, you are assured they have all the time to deal with your business. An office, however, has more brokers and their combined efforts bring more results.
You already know the value of your business but it is important you ask how they value the business. This will be a great way of telling how experienced they really are. Some will say it is net income multiplied by two. These are usually inexperienced people and it is best to run the other way before having your hard built business thrown off a cliff.
You may not want your clients and competition that you are selling the business. Clients may take it as a red flag and move on to another company. Ask the broker how they will make sure that both competition and clients do not find out about the sale. A good agent should wait until they find the best client and have them sign a non-disclosure agreement.
You do not want to land a agent that no one wants to work with. Ask your agent how many buyers they can get for your business. A good broker will tell you about a dozen. This goes to show they know them on a personal level and will sell. One who tells you tens of thousands probably has none or does not have an idea of who to approach.
The last thing you want is to leave a business you have worked so hard for a person who does not know what they are doing. Put out a little test. Blurt out a ridiculous but reasonable amount you want the business to go for. After the valuation, the broker should be able to reason with you and tell you why it will not work. If they agree automatically, run the other way.
Finally, ask them how many listings they have apart from yours. The more they have, the more likely you are to incur a loss. This is because they pick a lot of listings and try their luck on whichever one will sell. This shows that they do not put much effort into it.
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