How to Select a Qualified Business Broker

February 11, 2015 |

Business brokersThe role of a broker within a business transaction is very important, and because of this it is significant to get a good feel about those who are available prior to reaching a decision about engagement. Here are a few tips that will help you to sidestep the pretenders and find the right person for the brokering role.

How to choose the right person?

Brokering is a facilitation process. You want to select one who has the time to devote to finding the ideal transaction. Nearby, when there are cafés for sale in Sydney, we almost always see the name of Elite Brokers rise to the forefront. Still, one can choose the broker according to his requirement.

Before selecting a broker, make sure you get the right answers to certain questions like what is his experience in this field, how many businesses he has sold similar to the business that he is going to sell now, what is the brokerage interest that he expects from you and so on. If you have any doubts, never hesitate to ask them. If you are not satisfied with their answers, then you can ask for referrals from their previous clients and get the real picture of the broker or the brokering agency.

Advantages of using a broker

  • First and foremost advantage is that the broker can collect details about the buyer without disclosing the details about the seller, and hence many basic details can be kept confidential, in this case.
  • The broker will bring only the potential buyers to us, and hence more time will be saved as there will be no unnecessary time spent by the person in dealing the weak prospects.

Broker Agreement

It is essential to sign a proper broker agreement before starting the work. In the agreement, never forget to mention your requirements and conditions along with the fixed brokerage interest.

It will be better if the payment timing is included in it. Usually, the clause will mention that the payment will be done only after the entire sale is over, and this will prevent you from paying the amount upfront. Even the timing of sale can be included, and if the broker is not able to sell your business within the limited time then you need not pay the money for him. In such cases, only six months should be the maximum time that has to be allowed by you for the sale.

It will be better if the timing is between three months and six months. It is essential to include that if you find a buyer on your own then there will be no need for you to pay any brokerage.

Category: Business Acquisition, Business Planning, Featured

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