Working with a business broker can make selling your business much easier, but mistakes along the way can lead to stress, delays, or missed opportunities. By understanding common pitfalls, you can ensure a smoother process and better results. Here are the top five mistakes to avoid when hiring a business broker.
Before hiring a broker, take the time to learn about their experience and skills. Look for brokers with proper training or certifications that show they know how to handle business sales. Ask for references or examples of past clients they have helped. If a broker is unwilling to provide this information, it’s a warning sign. Choosing the wrong person can cause problems during the sale and might even cost you money.
To work well with a broker, you need to make your goals and expectations clear from the start. Discuss what you want to achieve, whether it’s getting the highest price, finding the right buyer, or closing the deal quickly. Also, talk about the broker’s role in the process. Will they handle advertising, talk to potential buyers, or guide you during negotiations? Without a clear plan, misunderstandings can happen, which can waste time and cause frustration for both sides.
The broker you hire should know your industry and the market where your business operates. Ask them about their past experience with businesses like yours. If they don’t have experience in your field, they might not know how to properly value your business or find the right buyers. This can lead to selling your business for less than it’s worth or struggling to attract interest. Make sure your broker has the expertise needed to help you reach your goals.
While it’s important to consider how much a broker charges, cost should not be your only focus. A cheaper broker might seem like a good deal at first, but they may lack the tools or experience to sell your business successfully. On the other hand, a broker who charges more might offer better services, like a larger network of buyers or stronger negotiation skills. Always balance cost with the quality of the service they provide. A low-cost option can sometimes result in more problems—and higher costs—later on.
When you hire a broker, you’ll sign a contract that explains how you’ll work together. It’s essential to read this document carefully. Look at things like how long the agreement lasts, how you can end it if needed, and how commissions will be handled. If you’re unsure about the terms, ask questions or consult with a lawyer. Failing to understand the contract can lead to disagreements or unexpected fees during the process.
If you’re considering selling your business, reach out to the experts at Murphy Business – Emerald Coast. With their experience in business sales, they can help you navigate the complexities and guide you to make the right decision at the best time. Contact them at (850) 374-8884 or complete their contact form to get started on your business succession journey.
