Need Help Selling Your Business?

10 Questions to ask your Business Broker – Ensuring you get the best sale possible.

1. Do you have a valid Fidelity Fund Certificate?

The business broking industry is regulated by the Estate Agency Affairs Board. A person may not claim any commission on a transaction if they do not hold a valid Fidelity Fund Certificate.

2. What services do you provide?

A good business broker will be able to offer more than just pure advertising of your business. Your broker should be able to assist you with the following:

• Assist you with a market related valuation on your business;
• Explain to you a marketing plan;
• Be able to give sound advice;
• And be able to assist you with all agreements and legal documentation needed.

3. How long have you been in the industry?

Through the years we have seen many promising business brokers come and go. The fact of the matter is that selling a business is a hard and difficult task. A brokerage that has been in in industry for some time should at least give you an indication that it knows what it is doing.

4. Are you alone or in a group?

You will achieve far better results using a broker that is working in a group and have a support system. Whilst there might be many professionals operating as brokers on their own, such individuals will not be able to reach the same amount of potential buyers as a broker working within a group structure.

5. How do you screen the buyer?

It is very important to know that your broker will only introduce qualified buyers. You do not want to enter into lengthy negotiations only to end up with a buyer that is not able to buy.

6. Do you have buyers?

An active broker will always have a few buyers on his books. These clients might have enquired with the broker searching for a specific business. Your business might just be the one they are look for.

7. What can I do to receive top value?

Your professional business broker should be able to assist you with sound advice on things to do to increase the value of your business in the market place. A broker that has been “around the block” will be able to point out problems /potential problems within your business that can be rectified before putting it on the market.

8. What do you not do/know?

While this might seem like a stupid question, in today’s dynamic business environment it is quite impossible for any one individual to be a specialist on all matters concerning a business. Knowing what your broker can/cannot do will enable you to source any such other services needed from other specialists, such as labour consultants or accountants.

9. Tell me about the market trends.

It is important that you know beforehand what is happening in the world of business broking. This will enable you to align your business proposition correctly. In Southern Africa as an example the lending criteria of banks, funding houses have a huge influence on the selling of a business.

10. Tell me about your success.

The end result that you have in mind is to receive top value for your business. A brokerage that has been successful in the selling of similar type of businesses is a good indication of the expected results.

Remember – To sell your business you need a professional that can deliver results