15 Questions to Ask your Potential Business Broker
Choosing a Business Broker Checklist
There are over 500 business brokers currently working in Australia assisting owners to sell their opportunities. Deciding which business broker is the best option for you and your enterprise is the top question on most owners' minds. It can make a big difference in how the sale progresses, whether you find the right buyer, obtain a fair sale price and ultimately sell.
Why you Need to Compare Business Brokers
Not all business brokers are created equal. Well in saying that, not all have the same experience and skills. Business Brokers tend to have had previous careers before undertaking the necessary training to become licensed business brokers. It is very rare to find a business broker without previous experience in one of the following:
- Ownership
- Accounting
- Financial Planning
- Marketing
- Sales
- Coaching
The benefit of this history? They understand how to run a company, read balance sheets, and analyse profitability. As an owners, we know our opportunity is different. It has competitors and similar companies, but no other operation has all of our systems, team, IP, lease agreements, products, services, work environment etc. No two companies are the same, maybe in principle like assessing profitability and reviewing financial statements. But your company is still unique, and so will your buyer.
A business broker needs to have good communication skills and an understanding of running a company if they ever hope to market, negotiate and sell. You want to find the right business broker for YOU and YOUR company. That will take some investigations.
Why it's Never About the Commission Rate
When it comes to selling a house, you will often choose a real estate agent based on their experience and the 'best deal' you can get. We all know how real estate agents advertise and drive enquiries via the big real estate portals and their databases. Selecting an agent to sell your home versus selecting a business broker is very different. Choosing the brokerage or company with the 'best rates' may be a bad decision.
A Business Broker is a professional in a very niche industry, with only around 15,000 businesses for sale in all of Australia - compared to the millions in real estate. A sale on average takes 6-12 months, whilst real estate properties are currently selling in Australia in just 30 days. There is a big difference!
When you sign on to sell your organisation, you are looking at a much longer time frame and you also risk exposing confidential information and affecting your final sale price, if you go with the wrong business broker.
We have put together a full guide to help you choose the right business broker.
Finding the right buyer for your business is harder than finding someone to buy a property.
If not commission rate, then how do I choose a Business Broker?
One of the first things you will want to look for in a prospective business broker is a verifiable track record. A good business broker should have positive testimonials or vendors they can connect you with. Brokers work in a B2B environment, and building strong connections with the community is important for their success. A good business broker will be well known.
Business Broker Checklist
Ask these 15 questions to your potential business broker - find out who is the right fit for YOU and YOUR company.
PRINT PDF CHECKLIST: QUESTIONS TO ASK A BUSINESS BROKER
There are some great business brokers in Australia who work hard for their clients to achieve an optimum price and successful sales. Choosing the right business broker for you is a challenge.
> Guide: How to Choose the Right Business Broker
> Meet Brokers in the Bsale Magazine
Best of luck with your journey to finding the right business broker!
About the author
Vanessa Lovie
CEO Bsale Australia
Vanessa is the current manager and CEO of Bsale Australia. Over the past 11 years as a business owner, she understands what it takes to grow a ...
