What to look for when interviewing business brokers?
by Broker Service Network at www.brokerservicesnetwork.com
Confidentiality : All business brokers should protect the confidentiality and integrity on all businesses for sale. All business brokers should protect confidentiality through the use on Non-Disclosure agreements that prevent the businesses for sale buyer from disclosing ANY information about the business to anyone. If said confidentiality is broken then the business brokers will go after the buyer in court for damages - usually set at 10% of the listing price or minimum $10,000.
Buyer Qualification : All good business brokers should qualify buyers based on experience, financial means and a basic credit history - though most - if not all - BSN business brokers DO NOT require credit reports or financial statements as part of the qualification process. Instead, BSN business brokers interview all businesses for sale buyers through an interview set-up similar to an employment interview.
Buyer Financing : Can the business brokers you are talking to arrange financing for the buyers. If so, are the sources the business broker has multiple and diversified? BSN business brokers have more than 40 lending sources to drawn from that handle most types of loans
Business Broker Networking : All good business brokers have many different avenues where they can generate qualified buyers -ask the business brokers. If all the business brokers do is advertise businesses for sale in the local paper then you are not doing yourself a service by hiring this type of business broker. BSN business brokers have more than two dozen sources from which to draw qualified buyers.
Business Broker Training & Support : All good business brokers have received formal training from a reputable organization. If their training cam from books, video tapes or correspondence classes then you should find another business broker. All good business brokers are also supported by a reputable support firm. IE: BSN business brokers are certified and receive 3 solid days of one-on-one training followed by a lifetime of comprehensive support.
Questions to ask prospective business brokers
- How do the business brokers protect confidentiality and can they demonstrate it?
- How do the business brokers qualify buyers and can they demonstrate it?
- What types and how many lending sources do the business brokers have in place?
- Are the business brokers fully trained, certified and supported by a reputable source?
- Can the business brokers prove #4 last above?
- How diversified are the business brokers as far as networking affiliations to find qualified buyers for the businesses for sale.
- How many listing do the business brokers and their agents take. If it is more than 10-12 listings per broker or agent then how could they possibly give your business for sale the time and resources it needs to sell.
- Ask the business broker who they work for - you or the buyer
- Are the business brokers willing to co-broker - if NOT then you are not dealing with a reputable business broker - you are dealing with GREED.
BSN has certified all business brokers in our network at www.brokerservicesnetwork.com
