A lot of company holders today have sold their previously owned businesses through brokers. Some think that they couldn’t have done the sale better if it wasn’t for the broker while others show a lot of regret, and wish they did it on their own. There are a number of brokers who are very good at handling the transactions and also making sure that the buyer is able to get a perfect deal. Others would vanish soon after the signing of the letter of intent or even more serious being a stumbling block in the whole deal. Brokers are a vital part when it comes to the transaction procedure but it can become agonizing for both the seller and the one buying if an erroneous broker is chosen. Here are few tips of what good brokers do.
They prove they know the industry
A jack of all trade but master of none, are brokers who would know everything in all industries. For instance, if your company is in the iPhone app industries look for a broker who specializes in the mobile telephony technology. Since you are the one who is in control play around and pose the broker numerous specific questions around the industry. If the broker gives you vague answers or plays around general answers, you are sure he is a con.
Check with IBBA
Many brokers would be members of the IBBA (International Business Brokers Association) which facilitates education, professional designations, networking opportunities and conferences for business brokers all over the world. You can check whether the broker is a member of this organization.
Have samples of their CIAs
Business brokers most often will first prepare a confidential information memorandum (CIM) for you. Before the broker prepares one for you ask for few samples that they may have and check the deals they have undertaken for companies in the past. A good CIM should be very brief and precise while bad ones contain a lot of industry info that are irrelevant having no ability to attract buyers quickly.
Evade the pressure
Most brokers would put you into a lot of unnecessary pressure which you shouldn’t allow. This will have a negative effect on you and find yourself making some decisions in a rush. Remember that the process of selling your business is very personal and you need to leave no chances for any uncertainty. Be sure to ask enough questions, learn and explain all doubts.
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