How to find a Business Broker and Professional Advisor that is right for you
The right professional advisor can help you find the business that you
are looking for. Many buyers when searching for a business for sale turn to their
accountant and attorney for advice. Although your accountant or
attorney may have experience dealing with various types of business,
there are not professionals in helping you find a business for
sale. You should consult your accountant and attorney before the purchase, but don't
rely on them to find you a business. Ask them to refer you to a
business broker as you will need one for the following reasons:
A broker will ask you lots of questions and know exactly what you're looking
for. He or she may even be able to help you decide what kind of business might be
best for you to purchase, given your resources, abilities, and
interests. A business broker matches buyers and sellers.
- A broker helps
to facilitate the negotiating process. Since buying a business is
at least as emotionally charged as buying a home, you will benefit
greatly from a third party who can handle all aspects of the
transaction. A broker can speak more candidly to each party involved
in the transaction than they could manage on their own.
A broker helps to untangle any red tape. An experienced broker will know
the most efficient way to acquire all the necessary permits and licenses
and will know how to locate financing and a reputable escrow company. This
helps to eliminate many potential risks to you.
Finding a good business broker is not an easy task. There are many people who
call themselves brokers, but they are in fact real estate sales
people who sell real estate as well as sell businesses in addition
to their real estate activities. If you want specialist help,
it is always best to look for a specialist business broker. Many are listed in the
Yellow Pages and others advertise businesses for sale in newspapers
and on the Internet. The key is to look for a business broker who has listed and
sold businesses in the industry or industries that you are
You need to look for the following in your search for a business broker that is right for you:
Experience - The broker must be experienced with at
least two or three year's full-time work behind him in the
Education - A good business broker should have a sound knowledge
of finances and preferably have accounting qualifications.
Specialize - The broker must specialize in businesses and
not be involved in real estate or commercial
Credentials - The broker must be licensed or approved
to sell businesses under the regulations in your
Facilities - The broker should have office facilities
available for meetings and to which you are able to direct
inquiries by telephone when necessary.
Be available -
The broker must be available by phone,
even if it is just his mobile, so that you can clear queries that
Alive - The broker should have sufficient energy to
be able to give the time to help find your business quickly.
In this regard age will come into it because on the one end a broker
that is young will not have the experience or maturity to handle
the assignment properly, and a broker that is too old will not have the
stamina or the energy to do the job quickly.
Easy to get along with - Your broker must be someone
that you believe you can put your trust in because you will be
working with him or her quite closely in the future. He or she must have
credibility and bring across to you a sense that you can rely on
him or her to secure a good business at the best price in the
shortest amount of time.
Finding a good business broker is difficult, but you
definitely need one to help you in your business search. If your accountant or
attorney cannot refer you to a business broker that is "right" for
you, ask your banker or other advisors for a referral. Your family and friends are
also excellent resources.
You can search over 2,500 business brokers and agents in our Business Broker Directory.
Click here to search our Business For Sale Listings.
Click here to return to our Buyer's Guide.