5 Traits of a Successful Business Broker
Choosing a business intermediary is extremely important when taking the steps and moving forward in planning your exit strategy.
If you’re a business owner and you think that it is time to sell, you want to work with a business broker that is experienced and that can help you secure the highest price possible. Some business owners decide to go at the process alone, or even worse, they end up working with a broker and/or brokerage firm that charges them outrageous fees for undedicated service. Choosing a business intermediary is extremely important when taking the steps and moving forward in planning your exit strategy. Taking the time to research what firm is right for you is one of the deciding factors in selling your business. A successful business broker possesses five important traits that will help you sell your business to the right buyer in the most efficient way and time possible.
One of the most favorable traits of business brokers is that their everyday job consists of forming relationships. Making these relationships and forming trust with business owners that could potentially become future clients is necessary for securing a business brokers listing. If you’re an entrepreneur, you consider your business as a part of you. A reliable business broker will resonate with business owners on a deeper level and understanding and forming a solid relationship can move the deal forward significantly in a shorter amount of time. The more relationship-oriented one is a business broker, the larger pool of connections they will form to serve his/her clients and to find an appropriate buyer. A good reputation in the networking community can assist in the negotiation of the acquisition.
Persistent and Motivated
If you want to secure the highest price possible for your business, you need to find someone is not only relationship-oriented but someone who will stay motivated during the process. Business brokerage firms are focused on constant service. Constantly keeping tabs on the deal and working with the seller as well as potential buyers is a part of an intermediary’s job. If buyers fall through in the process, a successful business broker will always be persistent and continue to market your business diligently and vet buyers despite the incident. There can be many pitfalls that can delay the acquisition process, so you need a broker that will stay focused and motivated even in times of doubt.
Patient and Understanding
Both parties’ business brokerage must have a great deal of patience in order to get the job done. The deal should take no longer than the agreed length of the listing agreement but rushing to finish the job isn’t always the best route to take. Know that it can take anywhere from 6-9 months to officially close on a business. Having a broker who can walk you through the valuation process, taking time in finding a suitable buyer, and be patient during due diligence and closing will give you a positive piece of mind.
A successful business broker should always have a basic understanding of the financial and legal aspects of business brokerage in case something needs to easily be handled during the acquisition process. It is also recommended that a business broker have his/her real estate license in order to sell a business because most businesses include a real estate sale. At Viking, we have a team of professionals dedicated to valuations and marketing, so it is not completely necessary for our business brokers to be proficient in these areas, although it can be helpful.
Confidentiality is by far the most important aspect when listing a business. The worst thing that can happen to a business is the employees or outside parties knowing that it is for sale before officially closing the deal. You must know and trust that the broker you are working with will not reveal to anyone that the business is on the market or any other information about the business in general. The connections a broker makes with buyers must be well-monitored as well, making sure that a non-disclosure agreement is signed before revealing the name, location, inventory, employees, and other specific details about the business.
Selling a business is a process that takes time, energy, and patience. Choosing a business broker to help you move through the process as diligently as possible is the best idea if you want to secure the highest price. At Viking, our business brokers can help you through every step of the way. If you’re interested in selling your business, contact us today for a complimentary valuation.