We receive multiple calls and emails weekly from business owners asking how to hire a business broker. Another question we hear a lot of is; what are the costs associated with hiring a business broker? Can I hire a business broker if I’m buying a business? What are the other advantages of hiring a business broker? This post will answer each of these questions so you can better understand the advantages of hiring a licensed professional business broker.
What are the costs associated with hiring a business broker when selling my business?
- Most Business Brokers charge a fee based on the selling price of the business.
- Some Business Brokers charge a retainer or upfront fee to list your business.
You should always go with a Broker that charges a fee based on the selling price of your business. When you sell your home, your Real Estate Agent charges a fee when the home is sold. They don’t ask for an upfront fee.
You should always avoid the broker that charges a fee before listing your business. What incentive do they have to sell it? You already paid them. For every Business Broker that charges a fee to list your business, there are 10 that won’t.
Can I hire a Business Broker if I’m buying a Business?
- Hiring a Business Broker when buying a business is very common.
- A Business Broker will help you locate, negotiate, conduct due diligence and uncover items you may not know exist.
- Business Brokers have experience in buying and selling businesses on a daily basis and their input, advice and direction will save you thousands of dollars and hundreds of hours of research and frustration.
What are the other advantages of hiring a Business Broker?
- Business Brokers can keep the sale of your business confidential.
- Business Brokers can help you price your business effectively and competitively.
- Brokers can discuss items with buyers and sellers that they may not be comfortable discussing with each other.
- Brokers keep your deal moving along so you can focus on running your business.
- Your Broker will negotiate on your behalf, help locate financing and be your advocate throughout the entire process.
- Your Business Broker won’t cost you a dime unless you actually buy or sell a business.
When you hire a Business Broker you’re hiring a professional with the knowledge and experience of buying and selling businesses. Many individuals will buy or sell a business once in their lifetime. Business Brokers are involved in buying and selling businesses on a daily basis.
Make sure your Business Broker is a licensed Real Estate Agent that specializes in selling businesses. Hiring a residential agent to sell a business is like hiring a pet groomer to cut your hair. Interview several Business Brokers and hire the one you’re most comfortable with. I can’t stress to you the importance of licensing; there are many brokers out there that claim to be consultants or business brokers but lack the proper licensing and training.