Are you considering selling your business and aren’t sure what business broker to use? You aren’t alone! Business wonders are often looking for the perfect business broker and aren’t sure of the best qualities to look for. That is where we come in, with our seven tips that help to narrow your search and find the perfect business broker for your needs. Our tips include testing their communication and checking what is included in their fees. Our brief guide below details these tips in more detail, so let’s get into it!
1. Check the business broker’s license and insurance
Before doing anything, you want to check that your business broker has the correct license and insurance. All business brokers in Australia should be licensed, insured, and a member of industry associations, like the Australian Institute of Business Brokers (AIBB). You can usually find out information about a broker’s license on their website, or you can ask the broker directly.
Reputable business brokers will be happy to provide you with a copy of their insurance and membership with industry associations, so don’t be afraid to ask for them. Having copies of these documents offers you protection and allows you to hold them accountable if anything should go wrong. We would not recommend moving forward with any company that will not provide their license or insurance details.
2. Understand what is included in their fees
You also want to know exactly what is included with a broker’s fee before moving forward with them. A reputable broker should be clear about what is included in their fee, like advertising and commission fees. Ideally, you want a broker fee that includes everything, so there are no hidden surprises when you sell your business. If the fee does not include everything, ask your broker about any additional fees so that you know what to expect before moving forward.
3. Ask about their previous selling history
You don’t just want a broker who talks a good game, you want proof of their success. A selling history is an excellent way to see if a business broker is suitable to sell your business. It’s worth asking for their list-to-sale ratio to see if businesses are selling or if the broker is simply collecting a listing fee and not making any attempt to help sell the business. Most reputable business brokers will have this information available for you and might even include success stories of their sold businesses on their website.
4. Ask for a valuation
It is also worth asking for an estimated valuation of your business before moving forward. Most business brokers will be happy to provide you with an estimated valuation of your business and how they have arrived at this price. Their valuation and reasons are a good way to see if they are honest about the price your business can achieve, or if they have increased the price to secure your business. You want a business broker that offers a realistic price for your business, allowing you to sell swiftly without any disappointment.
5. Ask about their marketing plan
When selling your business, a broker should have a detailed marketing plan that will attract viewers and potential buyers. Asking about this marketing plan will allow you to see their plans for listing your business. Ideally, your business broker should have a well-thought-out marketing strategy that covers an online marketing approach and contacting people in your industry.
6. Ask for examples of previous sales
Along with asking about their list to sell ratio, you will want to see examples of businesses they have sold in the same industry as yours. This will show you if they have experience selling your type of business and if they have potential buyers they can reach out to when selling your business.
7. Test their communication
While a business broker might reply instantly when they are taking your money, they might stop as soon as they get it. So we recommend testing their communication to see if their responsiveness is genuine or not. Ask a family member or friend to contact them about a business listing and see how responsive they are and the speed it takes to get back to them.
Find your business broker in Adelaide today
Armed with our seven tips, you can now move forward and find the perfect business broker to sell your business. Lloyds brokers are an excellent option for anyone in Adelaide who wants a reliable and responsive broker who will secure a fair price for your business. Contact Lloyds brokers in Adelaide for a quote today.
