How To Find The Right Business Broker For You?
Choosing the right business broker can be daunting, especially if you’re new to the industry. Each Business Brokers Melbourne has different skills and specialties, so it’s important to do your research before you sign on the dotted line with anyone. To help you out, we’ve compiled this guide to help you understand how to find the right business broker for your needs, whether it’s brokering an acquisition or merger, finding finance for expansion, or liquidating your business and selling off assets.
What are the different kinds of brokers?
There are two different kinds of business brokers: intermediary and transaction. Intermediary brokers work on behalf of a buyer or seller by matching them with someone else in their network. Transaction brokers have no vested interest in one side of a deal, so they’re more likely to suggest an accurate price point. Just make sure they aren’t taking a commission from either party.
What are their rates?
There’s no standard, but you can expect to pay anywhere from 5% – 15% of your overall sale. Plus, it’s not uncommon for brokers to take a percentage of any transaction fee they negotiate.
Is it better to buy via auction or private sale?
Private sales are used most often when a Business For Sale owner is seeking a quick transaction, particularly if there are several interested buyers. Auction sales take more time and require more marketing, but they also offer better opportunities for price negotiations and can be well worth it in some cases.
What do you need from a broker?
Finding a business broker you can trust and get along with is important. As such, it’s important to be clear about what your particular needs are: What kind of buyer are you? Are you operating as an individual or a corporation? What kind of transaction do you have in mind? While there’s no right answer, having a list of questions like these written down before talking with a broker can help narrow down which brokers would actually be good fits for your personal situation.
Do your homework
Be sure you have a good idea of what you want in a business broker and don’t hire someone who’s just going to hand you a list of businesses that are not a good fit for your needs. Make sure you do your homework and research business brokers. Check out reviews and ask friends, colleagues or family members who’ve worked with them in the past.
Give yourself time, do your research and shop around.
In order to choose a business broker, you need to give yourself plenty of time. Don’t rush your decision. Take a realistic look at how much time you have available and set aside that much time just for shopping around, researching and meeting with brokers. Also, try not to see these first few meetings as opportunities for you and your future broker.
It’s important that you work with a broker who has your best interests in mind. A good Business Brokers knows how his or her clients have fared in previous transactions and if he or she is an active participant within industry trade groups, it can give you some sense of their reputation.