Two Things to Ask a Business Broker Before Hiring Them Directly

Deciding to work directly with a business broker for the purpose of selling your online company is an exciting proposition as it means you’re moving closer and closer to cashing in on a business that you have worked so hard to generate, tweak and build. However, it is equally important to make sure that you vet the person you are thinking about bringing in to your process so that you can verify that you have done everything possible to protect your interests and to set your business up to sell for maximum profit.

One of the most important questions you’ll need to consider early on in this process is how the broker typically works. Many people have the question, how long does it take an internet business to sell? But it’s important to realize that the amount of time it takes to sell a website depends on numerous factors, such as the complexity and the overall size of the deal, the existing business model for the company and the market the business is in. Asking your business broker upfront, such as those working directly with Website Closers, could give you an idea of the average time to sale for online businesses they list.

This is a relatively good indication of the existing buyer network they have and whether or not your business broker can successfully value businesses appropriately. The size of the business, of course, will have a significant impact on how quickly it takes to sell but typical sales times can be anywhere from 30 to 90 days.

There are two key questions that you must be prepared to ask your business broker before signing an agreement to work together.

Legal Assistance

Good brokers will have an established network of professionals. If they do not provide a service directly they should be able to recommend someone who can help you with your question or concern. One way that this might come up will have to do with legal assistance. Good brokers will have some experience in working with attorneys or drafting legal agreements and will understand some of the creative deal structuring and term negotiation issues that come up.

You should also be notified by your broker about the importance of getting independent legal advice to review all documents prior to the time they are signed. Any broker who argues that you do not need an attorney or a lawyer or says that you do not need to use asset purchase agreement should be avoided.

Confidentiality

You’ll have to reveal some very important inner details about your company to go through the sale. This is what makes confidentiality of chief importance in the sales process. You don’t want customers, staff or competitors finding out about the potential sale of your business.

A professional business broker will hold confidentiality in the highest regard and will generate interest in your business only by using teaser information. Interested buyers will also have to be appropriately qualified before receiving any of these details, such as by illustrating that they already have the financial means to purchase the company. Finally, a broker should also require that any interested buyer sign a nondisclosure agreement before getting inside details about the company. This helps to vet the network of prospective and interested parties to ensure that you are getting the most from each action that you take in hiring a business broker.

Website Closers is proud to have established a legacy of working hard in this arena and ensuring that your interests are always protected.