Selecting a business broker to sell your business is the first critical step in the process of selling your business successfully.  Below are tips & guidelines for business owners who want to select the best intermediary to sell their business!

1.  Know up front what your expectations are in a business broker who will be selling your business.  Make sure you discuss and convey those expectations to the business broker you select.  Direct and open communication about your expectations of your business broker is critical in selling your business.

2.  Ask the business broker how he or she is going to advertise and get the word out about your business for sale.  Make sure he or she allocates an adequate budget for advertising and marketing to sell your business.  Successfully & confidentially exposing your business for sale to a lot of qualified business buyers on a consistent basis is what sells a business!

3.  Have the business broker determine the value of your business.  Ask him or her about a cash price vs. a price with terms involved.  This is very important since businesses that do not sell are usually due to too high of price for the marketplace or unrealistic terms and conditions on selling the business.  There are many ways to structure a deal.  You need a business broker who can discuss these variances with you.

4.  If the sale of your business is confidential, you need to know how the business broker is going to keep the sale of your business quiet while still marketing it.  Make sure the business broker is using a professional Confidentiality Agreement form for your protection and will keep this on file at all times.

5.  Make sure the business broker you select has prepared your business for the marketplace.  Are all the financials and tax returns in good order and understandable?  Do you have all documents: lease agreement, equipment leases, and contracts with vendors, etc. ready for review?  Time kills deals.  If your business broker doesn’t have it together, business buyers may look for another business to purchase!

6.  Make sure the business broker you select to sell your business is comfortable with selling your type, location, and size of business.  It amazes us to see how many owners select a business broker quickly out of the yellow pages without doing much homework on the business broker.  This is probably one of the most important decisions you will make when selling your business.  Make sure you select the right business broker to sell your business.

7.  Returning phone calls is important!  Make sure the business broker you select is prompt when getting back to potential buyers.  You would be surprised how many business brokers delay calling back buyers.  Remember the sale of your business is in "competition" with the sale of thousands of other Florida businesses.  You want to make sure your business broker is responsive in getting back to potential buyers.

8.  Time kills deals.  Make sure the business broker you select is responsive in getting things accomplished and moving things along.  Deals tend to go south when parties aren’t moving forward at all times.

9.  Communication with your business broker is important.  Make sure you let your business broker know what your expectations are for letting you know what’s going on i.e. once a week updates, only call when something is going on, etc.  It’s up to you, however we think it is important that at least weekly dialogues between seller and business broker take place so you can see how things are progressing.  Find out how many buyers have called, and get feedback on any buyers who have expressed an interest in your business for sale.

10.  Make sure you pick a business broker who spends the needed time on your business for sale.  Some business brokers take on too many listings knowing that some may not sell.  It’s a numbers game to them. You need an agent who understands your business, what your expectations are, and who can properly get your business sold!

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