How to Find a Business Broker?|
by Jim Brown
The right professional advisor can help you find the
business that you are looking for. Many buyers when
searching for a business for sale turn to their accountant
and attorney for advice. Although your accountant or
attorney may have experience dealing with various types of
business, there are not professionals in helping you find a
business for sale. You should consult your accountant and
attorney before the purchase, but don't rely on them to
find you a business. Ask them to refer you to a business
broker as you will need one for the following reasons:
- A broker will ask you lots of questions and know exactly
what you're looking for. He or she may even be able to
help you decide what kind of business might be best for you
to purchase, given your resources, abilities, and
interests. A business broker matches buyers and sellers.
- A broker helps to facilitate the negotiating process.
Since buying a business is at least as emotionally charged
as buying a home, you will benefit greatly from a third
party who can handle all aspects of the transaction. A
broker can speak more candidly to each party involved in
the transaction than they could manage on their own.
- A broker helps to untangle any red tape. An experienced
broker will know the most efficient way to acquire all the
necessary permits and licenses and will know how to locate
financing and a reputable escrow company. This helps to
eliminate many potential risks to you.
Finding a good business broker is not an easy task. There
are many people who call themselves brokers, but they are
in fact real estate sales people who sell real estate as
well as sell businesses in addition to their real estate
activities. If you want specialist help, it is always best
to look for a specialist business broker. Many are listed
in the Yellow Pages and others advertise businesses for
sale in newspapers and on the Internet. The key is to look
for a business broker who has listed and sold businesses in
the industry or industries that you are interested in.
You need to look for the following in your search for a
business broker that is right for you:
1) Experience - The broker must be experienced with at
least two or three year's full-time work behind him in the
2) Education - A good business broker should have a sound
knowledge of finances and preferably have accounting
3) Specialize - The broker must specialize in businesses
and not be involved in real estate or commercial property.
4) Credentials - The broker must be licensed or approved to
sell businesses under the regulations in your state.
5) Facilities - The broker should have office facilities
available for meetings and to which you are able to direct
inquiries by telephone when necessary.
6) Be available - The broker must be available by phone,
even if it is just his mobile, so that you can clear
queries that arise immediately.
7) Alive - The broker should have sufficient energy to be
able to give the time to help find your business quickly.
In this regard age will come into it because on the one end
a broker that is young will not have the experience or
maturity to handle the assignment properly, and a broker
that is too old will not have the stamina or the energy to
do the job quickly.
8) Easy to get along with - Your broker must be someone
that you believe you can put your trust in because you will
be working with him or her quite closely in the future. He
or she must have credibility and bring across to you a
sense that you can rely on him or her to secure a good
business at the best price in the shortest amount of time.
Finding a good business broker is difficult, but you
definitely need one to help you in your business search.
If your accountant or attorney cannot refer you to a
business broker that is "right" for you, ask your banker or
other advisors for a referral. Your family and friends are
also excellent resources.
This article courtesy of http://www.investment-index.com.
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