24 Apr How to Choose the Right Broker (Part 2 of 2)
This posting is a continuation from Part 1 which shared common requirements to look for in a broker, whether the person looking is a buyer or a seller. Today’s posting focuses on buyer only and seller only requirements.
Seller only requirements
Security
Ensure that the broker fully understands the need for secrecy during the selling process, as any leak could be costly in terms of staff and trading losses. Get him to sign a confidentiality agreement.
Marketing
Find out if the broker has a marketing plan in place, covering advertising strategies and how the business will be positioned to attract the widest attention from prospective buyers.
Length of contract
Most brokers will ask you to sign an exclusivity contract, which is fine, but don’t commit yourself to more than six months. That is ample time for a broker to show their worth and get things moving. When the termination date comes, you can renew for a further six months or go elsewhere if things have not gone as expected.
Communication
You need to be kept abreast of all happenings, so arrange for a weekly report.
Buyer Only requirements
Broker interest
Any broker worth his salt will ask about your requirements and financial situation to check that you are serious and that he can provide the service you require. If this doesn’t happen, move on.
Communication
Your chosen broker should not only keep you abreast of market listings that you don’t have access to elsewhere, but also supply you promptly with information you request about businesses of interest. They should also arrange for you to visit those you wish to see.
Contact point
A good broker will act as a link between buyer and seller and “take the heat” should there be any need to modify an offer, renegotiate terms, or even withdraw.
Bureaucratic help
There’s a lot of paperwork involved in any transaction, and although your lawyer and accountant will be at the forefront, a good broker will help to smooth the path.
This article was contributed by BusinessesForSale.com, the market-leading directory of business opportunities from online media group Dynamis.
