The Advantages and Disadvantages of Business Brokers

Are you planning to sell a business or maybe to buy one? Before you go further in both of these process, you have to make a decision whether you are going to hire a business broker or just handle the deal all by yourself. However, what factors are you going to consider in order to make a decision? Let us take a careful look at the advantages and disadvantages of using a business broker.

The Advantages of Using Business Brokers

• It is time saving. Selling a business or even buying one can definitely be a time consuming process especially if you are handling the deal yourself since there are a lot of required documents you need to settle. But with the help of a business broker, you will certainly save a lot of time. Additionally, they can save more time by providing qualified prospects. You don’t even have to advertise your business on sale since they already have the list of serious buyers who are interested to purchase a business.

• Profit from experience. Experienced business brokers will have the potential of providing you a great profit because they already know how the business works.

• Confidentiality. If business owners want to keep their plans in private, they usually hire business brokers to handle the work. In some markets, the companies are so well known which may cause their sale or purchase in pending if their plans of selling or buying a business is broadcast.

The Disadvantages of Using Business Brokers

•  Expensive. Keep in mind that brokers also charge commissions. Since this kind of transaction involves a lot of work, business brokers will ask you to pay them an amount that will compensate their effort.

• No assurance that business brokers will be your comrade. You are not guaranteed whether the information they are providing is true or not just to make a business more appealing to customers. 

Tips in Hiring a Reputable Business Broker

If you need someone to guide you in selling your business you can hire a business broker to assist you. A business broker is the same as a real estate agent for they both bring buyers and sellers together. However, there are various factors you should consider in hiring reputable business brokers.

Credibility is the first thing to remember when hiring a broker. You may ask your lawyer or some of your friends the names of reputable and experienced business brokers. Also, try to find a business broker who has the same specialization of selling a business that is equal to yours. To ensure your protection, check the background of the broker you are going to hire that you can use in instances of complaints and lawsuits.

To make sure that you are getting the best broker, you can get a list of potential brokers at International Business Broker’s Association. They have more than 1,300 members you can choose from. The point here is, you should look for business brokers, which has built several connections with accountants, lawyers and other professionals.

Selling a business is a matter that needs to be taken with confidentiality. If your plan in selling the business is made known by your staff, then that might create a commotion and can also cause you to lose your potential buyers. Your business broker should guarantee you protection of your business.

In order to sell your business successfully, you should hire a business broker who have a thorough and efficient marketing plan including advertising techniques to attract buyers. Aside from that, you should get a business broker who can help you make the right decisions in settling the right selling price of your business to ensure that you don’t lose your hard-earned money in establishing a profitable business.