When selling or buying a business it’s smart to collaborate with a business broker. But how to find a business broker that optimizes your results, someone that has your best interest at heart. These five indicators will help you determine if you’re talking to the right partner.
Why use a business broker
When it comes to business transactions, there are buyers, sellers, and brokers. While it may seem like only the first two are needed for the sale to go ahead, the nature of business ownership means an extra set of skills is required to facilitate the transition. Buyers and sellers may know businesses, but that doesn’t mean they know what is required to sell a business. Business brokers handle transactions the way you would want your business to run – smoothly, with everybody kept happy. Curious to find out how to find a business broker that gets you results? Read the 5 tips that will get you all the insights you need.
How to find a business broker that has your best interest at heart
Just as no two businesses are the same, business brokers can also differ in what they offer. Some may specialize in certain industries or provide services that others don’t. One of the key traits they must possess is interest in the business being offered. In order to get the most for their client, brokers must know every part of what is being sold. Only from there will they be able to truly determine its overall value. It’s always worth doing your research before making contact with a broker. Here are five ways to narrow the search for a business broker.
1.Check reviews and public reputation
It’s all very well for a broker to have the experience, but the quality of work is also important. Relationships are a vital part of business brokerage, so it doesn’t hurt to have a look at what previous clients have said. Brokers won’t want to hide any positive feedback they have had, and even negative reviews have a way of finding their way to the surface. Social media can be useful in getting a sense of the type of transactions conducted by a brokerage firm and also what they stand for. Even in the digital age, word of mouth can also guide you in the right direction. You may know someone who has sold a business or know someone who knows someone else. It’s all about getting the conversation started.
2. What’s their experience in general?
You should be able to get an indication of a brokerage’s history through web research. The ‘about’ section of their site will provide a brief outline of where they started and how they got to where they are now. On our about page we not only give you an outline of our story, we also introduce you to our team of business brokers in Perth.
As with any web-based fact-finding mission, it always helps to cross-reference any claims that are made and names that are mentioned. If possible, try and find information from outside sources about the brokerage to build a fuller picture of the business. A broker who claims to have a large number of buyers at their disposal may seem like an attractive option, but its quality, not quantity that could be more beneficial. Solid relationships with a handful of relevant buyers is of greater value than a generic email list.
3. What’s their experience level for your industry?
A business broker should not only have an understanding of the business he or she is trying to sell, but also of the industry it belongs to. While there are industry-specific brokerage firms, many cover a broad spectrum of business types. Testimonials can be a good source of context, as search engines. Even googling your own industry with the name of a potential broker could be enough to decide whether a broker is suited to sell your business. A broker who has sold businesses in your industry would have relevant contacts of buyers related to your business and know the appropriate marketing path to take.
4. Find out which marketing tools they will use
A big part of selling a business is finding the right audience. This can come down to the methods used to put the business on the market. The role of a broker is to assist a seller as they explore networks of competitors, customers, employees, friends, family, and industry professionals, while also providing contacts from their own mailing lists. They are best placed to assess the values of channels such as social media, the internet, local and state newspapers, and trade journals when it comes to finding a buyer for your business.
5. How do they make you feel?
Never underestimate the value of your own instincts when it comes to deciding on a business broker. After all, as a seller, you are entrusting them with a significant portion of your professional life – a business that you have invested time, money and effort in. The broker needs to understand your motivations for selling and what the sale will mean to you. From a buyer’s perspective, the purchase of a new business can be one of the most critical decisions they will make. This can only happen with someone you trust and feel comfortable with. A business broker could have all the right skills, but if they don’t make you feel like they are on your side, then the transaction will reflect as much.
GMO business brokers in Perth, Western Austalia
Are you ready to find a business broker that gets you results? GMO is Western Australia’s most established and well-respected business broking agency. With over 25 years’ experience, and assisting on over $1.2billion worth of sales, we offer a premium buying and selling service for businesses across various sectors such as manufacturing, wholesale, accommodation, retail, hospitality and more. As Perth’s preferred business brokers, we are proud to be referred by the region’s best accountants, bankers, law firms and Western Australian migration agents. At GMO business brokers, we sell a multifaceted portfolio of businesses from all sectors. Our businesses range from retail outlets, hospitality establishments, and restaurants, to mining, service-related and information technology companies.
Contact us by e-mail or call us at +61 894 81 4422 to see if we’re your missing shoe.