New Jersey Business Brokers: Article About Tips For Finding an Advisor
Before you hire a business broker or intermediary to sell your business you'll need to interview them to make sure that he or she can meet your vision for selling. Each business broker has his or her own proven methods of selling a business and should be more than willing to share their strategies with you. After you hear how they plan to market and sell your business it's time to ask questions and decide if that professional is right for you.
You need to find out how long the business broker has been selling businesses, specifically in your industry. How much experience do they have valuing businesses and marketing to buyers? What is the ratio of successful sales to failed sales in the last few years? You may also be interested in their background such as a previous career. It would be interesting to know if they owned their own business, for example.
All of our New Jersey business brokers have decades of experience and have been successful in past sales and are willing to provide you with a few references. When you call past clients, ask them how they liked working with the business broker you choose and whether or not they met their needs. This may seem like common sense, but there are some business owners who choose a broker out of the phone book or call a company with a reputation in their area. However, just because a firm can afford a large phone book ad or a flashy commercial doesn't mean you'll work well with them. Before hiring anyone, ask your friends for referrals. If no one you know has worked with a business broker, ask other for professional references. It's hard to build trust and be honest with someone you know nothing about, so speaking with former clients can give you the insight you need to build a positive working relationship.
Since there are a number of methods used to perform valuations, find out which methods the business broker commonly uses for businesses like yours. Also find out how much experience the business broker has at valuing businesses and whether or not the owner usually gets around the price being asked for the business.
The business brokers from Selby Associates of New Jersey would be happy to answer any question you have about business advisory services or buying a business.
Your business broker should be in contact with you frequently once a sale is underway. They should also explain how they'll maintain confidentiality from buyers, and show you a traditional non-disclosure agreement that he would use.
Find out the business broker's typical marketing strategies. Does he have a lot of personal contacts or will he use more traditional means of advertisement? Also, how does he commonly show your business to potential buyers and how often does he bring buyers to see the business?
Once you start, you'll be glad that you asked all of the necessary questions beforehand so that you and your broker can work effectively together to successfully sell your business.
When you work with a business professional you want to have a good working relationship. The broker represents you as the seller, so it's important that the two of you work together well and have the same goals in mind.
Your broker will need to know lots of confidential information about your business. You must be honest in order for them to properly valuate your business and provide you with good service. Don't hide figures in your books or leave out pertinent information. If you're unsure about something, discuss it. Any broker who is interested in building a positive relationship will be available to answer your questions by phone, email, or in person. Communication is a two-way street, so make sure the broker you choose communicates well about any developments and updates you according to a schedule with which you are both comfortable.
Your broker may need to work in conjunction with your accountant or attorney. Instead of waiting until a problem arises and they all need to work together, introduce the broker to your team of professionals. This helps ease communication among them and allows the broker to feel comfortable approaching your attorney or accountant without you present. Working with a broker is relatively easy as long as you have open communication and the desire to work as a team when selling your business.