Selling or buying a business is a long and arduous process. There are teams of experts involved from accountants and lawyers to banks and brokers. For most people buying or selling a business for the first time, the only expert in the team they may not have experience with is a business broker.
Identifying a broker that meets your needs takes some time and a little investigation. By putting together some simple interview criteria around the kind of business you’re buying or selling, you’ll be able to identify the business broker that’s the perfect fit.
Background and Credentials
Any broker you interview should be able to provide credentials either on their website or immediately upon request. A website with multiple listings and a solid team that’s been in business for a significant number of years will tell you something about their success.
Proprietary systems and processes that support the sale, as well as any further education and experience in small business, will indicate a commitment and knowledge about business ownership.
Size and Substance
If you’re looking to purchase a $500,000 business but most of the businesses the broker works on are in the $5m range, chances are you won’t be serviced with the same level of support offered to larger clients.
The broker you select should also be selling businesses like the one you’re selling or buying. Do they market properties in the same area you’re in? Do they understand franchises for sale if you have one to sell?
Trust and Respect
The most important quality you should look for in a business broker is honesty and integrity. Without trust, you’ll never be confident in your decision to list or purchase. A trustworthy and respectful broker will be transparent with the process. A broker that values a business relationship with you will also be open to negotiating fees. They will also work with you to execute the most favourable terms for all parties involved.
Ready to Call a Business Broker?
LJ Hooker Business Broking is Australian’s leading business broker. Gautam Jain and his wife Vanita have the experience and technical expertise to give you the best advice on owning and operating a franchise. In addition to owning 11 Pizza Hut franchises and 4 Gloria Jeans outlets, Gautam is a qualified Business Valuer by the Australian Institute of Business Brokers.
LJ Hooker Business Broking matches buyers with trusted brands in franchising for a mutually successful outcome. With follow-up sales support built into the only database designed for business broking in Australia, our tailored sales and after service process enable buyers, sellers, brokers and third parties to be fully compliant. For more on how to buy a franchise, visit us online or call 02 9552 1111.