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How Do Business Brokers Work?

Posted by Bill Gustin in Articles

Whether you are planning to buy a business or to sell your company, you want to engage with an online business broker as soon as possible in the process.

Business brokers tend to be paid by sellers, which is something valuable to keep in mind if you are currently a buyer. As a seller, having a business broker who cares most about making the transaction happen seamlessly for you removes a lot of the pressure.

That being said, a knowledgeable online business broker can also help purchasers to narrow the search to the kind of businesses that meet their search criteria.

A Simpler, Better Process for Selling Your Business

Brokers can streamline everything for sellers from marketing the company to buyers, through the pricing process.

In addition to verifying that the broker’s personality is in line with your individual needs, it is good to evaluate them on many different perspectives. First of all, figure out whether or not the broker has a website.

You will want to visit their site to figure out how simple it is to use, how quickly it loads and the types of primary businesses are offered for sale. You will also want to ask for details about how this site is involved in the business sale process, including how many brokers work in the office, how many locations in the network rely on that site, how many qualified buyers are listed in the database, and how many companies are currently listed on the site overall.

How to Review Someone’s Track Record to Determine Next Steps

The broker’s latest track record is also an excellent place to begin asking questions.

A great deal can be learned about online business broker’s level of success and experience as well as the type of marketplace entering by requesting answers to the following questions:

  • How many of the site’s listings were represented by the individual business broker?
  • How long do listings typically last before getting to a sale?
  • How many businesses in a similar sized range or in the same industry were sold last year?

Why Marketing Methods Matter in Selling Your Business

Another common question you will want to ask an experienced online business broker is how they market the listings. One of the primary reasons that a seller is interested in working with an online business broker is to gain support and leverage through a marketing program. Ask what other listing sites are used and where their classified print ads are placed in terms of the listings.

An online business broker should be open to discussing the benefits of choosing to put together a sale. This process typically begins with a valuation of the company and your online business broker can most likely help you with this phase as well.

At Website Closers, our process is focused on you from end to end- we get a sense of your goals and use that to outline a plan to accomplish what you need. You’ll know you’re in good hands with us.