3 Questions to Ask Your Business Broker
Using the services of a business broker can be a great way to streamline the process of selling a business in Australia. Rather than do all of the legwork yourself, a touch of expert advice can help you better understand the current shape of the market, as well as ensure you don't miss off the finer details of the process.
However, there can be a lot of questions to ask, even if you're a vastly experienced business owner. So, which are the best?
1. What is your success rate?
The New York Times contributor Barbara Taylor explained that asking this question can give you a better understanding of the track record of your broker. Naturally, this is best queried before you officially begin using their services, but it can help you garner how long your business might be on the market, and its overall chances of selling.
Ms Taylor suggested that the best brokers will have a pre-prepared answer for this question, with a good success rate considered to be around 80 per cent and above.
2. How will you screen prospective buyers?
If you worked hard on building up an endeavour from scratch, it's certainly a positive if all of that good work can be carried on by someone capable. To that end, Inc contributor Bob House suggested that it's best to ask your broker about the process of finding the right buyer.
If they have a pre-defined list of candidates that could progress the sale further, chances are they've done their homework and will find the right person to take the reins of your company.
3. How many listings are you dealing with at the moment?
Entrepreneur contributor Thomas Smale explained that this question will help you learn how much time the broker can put into selling your business. If they have a large portfolio, the decision depends on how hands-on you'd like them to be.
Ultimately, it's a bit of a balancing act. You need to ensure that the broker has enough time to walk you through the process, but someone with too much time to play with could well be unpopular for a reason.