What to Look for in a Business Broker

It is no secret that there are hundreds of brokerage firms and just as many business brokers nationwide.

The key is to know what to look for before engaging a business broker to represent you and deliver an outcome that is a win-win for all. Just as if a buyer would conduct a due diligence process before purchasing a business, you should consider conducting a due diligence / interview with the business broker you intend to engage.

What questions should I ask then?

Here is the list that was in that blog…  


THE ESSENTIAL TIPS:  before engaging a business broker

  1. Check if the business broker is licensed in your state
  2. Ask to view their personal license.
  3. Cross check the license number with the office of fair trading in your state.
  4. Where is the brokerage companies head office based?
  5. Is the company an accredited Real Estate Agency?
  6. How long has this brokerage company been in business?
  7. What type of licenses does the company hold and which states?
  8. Ask for the principals details and ask to speak or meet with them.
  9. Ask if you can come to their head office to be shown around on how they operate.
  10. Is the broker a specialist? If so, what area do they specialise in and how long have they been doing that?
  11. What have they sold that is similar to your business?
  12. Ask them to explain their methodology to you (or preferably your accountant) on how they came up with the price.
  13. What level of service is to be expected from the broker?
  14. How often can I expect communication?
  15. Will you be the same broker throughout the entire sales process?
  16. Can you run through the entire process from start to finish?
  17. I would like to discuss my options to list my business with my solicitor first, do you mind if I do this?

You can view the full blog by clicking on this link: http://benchmarkbusiness.com.au/17-essential-check-points-to-make-before-you-engage-a-business-broker/

If you adopt these 17 essential tips before engaging a business broker, then you can rest assured the small investment of time (your due diligence) is going to give you comfort and piece of mind as you move forward through the sales process.

Ian Salter – Senior Business Broker
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