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How To Choose A Small Business Broker

Jun 5

Business brokerage is a big industry, yet it is poorly understood by many small business owners. Whether you are looking to buy a business or sell one, a knowledgeable broker is crucial to the process. They will guide you through every step, helping you avoid common mistakes that can cost money and time.

Most small business broker only sell once, so this is a process that you want to get right. If you hire the right professional, the fee will pay for itself many times over in terms of the asking price and speed with which a sale is completed. A good broker will also work with your team, including your lawyer and accountant, to quarterback the entire transaction.

When choosing a broker, ask about their track record and how they have helped businesses similar to yours. They should be able to provide you with a list of current and past clients that you can contact for references.

You can also find out how much brokers charge by doing some simple research on your own. For example, you can use websites like BizBuySell (which is not a broker) to view listings of small businesses for sale. There are a variety of businesses on sale there, from Biz Broker Inc to marketing firms. You can even set up alerts if a business for sale that matches your criteria is listed.

A business broker can help you determine the value of a business by comparing it to other comparable businesses that have recently sold. They can also help you understand how changes in the economy and market affect the value of a business. This is a crucial step in the buying or selling process because it will help you negotiate the best price for your business.

While you can find a business for sale through a website or a business listing, it’s also a great idea to tap into your network and attend industry conferences. Talk to other small business owners and see if they would be interested in selling their company or refer you to a broker that they have worked with.

You can also do some research on your own to find a good broker, by finding out who has the most experience in your industry. For instance, if you are selling a digital agency, you should look for a business broker that has extensive hands-on experience in this space. A reputable digital business broker, like Website Closers, will be able to streamline the sales process and match you with the right buyers.

There are some situations in which you may not need a small business broker. For example, if you are selling a digital business that’s worth less than 6 figures, you might be able to do the sale without the help of a broker. However, this will require you to invest time in researching potential buyers and learning how to properly value a business for sale. You can start by reading IBBA surveys and studying basic valuation methodologies.