Top questions to ask your business broker
Selling a business can be a daunting and complex process, especially if it’s your first time doing so. Therefore, having the right business broker by your side can make all the difference. An experienced business broker (like the team at Core Business Brokers) can help you navigate the selling process, find the right buyer, and negotiate the best sale price for your business. However, finding the right business broker is crucial, and it’s important to ask the right questions before making your decision. Here are the top questions to ask your business broker when selling your business.
Questions for your broker:
What is your experience selling businesses in my industry?
It’s important to work with a business broker who has experience selling businesses in your industry. They will have a better understanding of your market and potential buyers, which can help facilitate a smoother and more successful sale. Here at Core Business Brokers, our team has almost 90 years of experience in the Sydney and greater NSW region. We’ve sold businesses across many industries, giving our team the experience and skills needed to sell your business successfully. We also have a Chartered Accountant in the team which is advantageous in understanding the due diligence process and creating solutions on the finer points which inevitably arise in negotiations.
Can you provide references from past clients?
A reputable business broker should be able to provide references from past clients who have sold their businesses successfully with their help. Honest reviews are a great way of understanding the experience of other business owners who have walked the path before you. However, It is important to take all experiences with a pinch of salt, as no two businesses are identical – and everyone’s business sale journey will look different.
How will you market my business?
Ask the broker what marketing strategies they plan to use to promote your business to potential buyers. This could include online listings, networking within industry circles, and outreach to potential buyers in their network. Look for a business broker who has operated in the region for an extensive period of time. This not only gives them a strong reputation, but it also means they’ll have decades of connections and interested buyers who they can reach out to on your behalf – increasing the chances of finding the right buyer for your business.
How will you determine the value of my business?
A business broker should have experience in appraising businesses and should be able to provide you with a breakdown of what your business is worth – and more importantly, a realistic sale price. Ask them how they will determine the value and what factors they will consider. Here at Core Business Brokers, our team takes into account all necessary factors (such as goodwill, plant and equipment, profitability and more) to determine your realistic sale price. We will tell you what you need to know and not necessarily what you want to hear i.e. we will give you an honest and realistic assessment.
What is your fee structure?
It’s important to understand how the business broker will be compensated for their services. Ask about their fee structure, including any upfront fees, commissions, or other costs associated with selling your business. A trustworthy and professional business broker will always be transparent with their fee structure. Look for honesty and integrity here, two things we prioritise here at Core Business Brokers.
How long do you think it will take to sell my business?
While it’s impossible to predict exactly how long it will take to sell your business, a business broker should be able to give you an estimate based on their experience and market conditions. Ask them for a realistic timeline for selling your business and their honest advice on how to best prepare for the sale.
How will you handle confidentiality?
Confidentiality is crucial when selling a business, as disclosing sensitive information too early can harm your business and its value. Ask the broker how they will handle confidentiality and what measures they will take to protect your business’s sensitive information. Ensure they use NDAs (otherwise referred to as CDAs) for all interested parties before sharing your business information – something we do for all serious buyers during the sale process here at Core Business Brokers.
Choosing the right business broker is a crucial step in successfully selling your business. By asking these questions and thoroughly vetting potential brokers, you can ensure that you find the right partner to guide you through the selling process. If you’d like to meet with one of our Core Business Brokers team to ask these questions for yourself, please give us a call today, at (02) 9413 2977.. Alternatively, you can email [email protected], [email protected] or [email protected] to have your questions answered. We look forward to meeting you.
