When it is time to sell your business, you will want to engage the services of a trained, experienced business broker to market your business to qualified buyers, and to oversee the transaction to ensure that it goes smoothly. One of the most important considerations when choosing a business broker is whether they can sell your business at the highest possible price, in the shortest amount of time.
Since all business brokers are not created equal, be sure to only consider professional and experienced business brokers. That will ensure you avoid these 5 ways many small business brokers in PA and NJ fail clients:
1. A lot of small business brokers in PA and NJ aren’t connected.
A majority of small business brokers don’t have a large network of potential buyers. A good business broker will screen interested parties to ensure that only high-quality buyers are introduced to your business. In our case, we have a database of over 10,000 potential buyers that we email on a regular basis. We also have 50 to 60 buyers contacting us daily.
2. Many are not qualified.
They don’t have the industry designations, such as CBI, M&AMI. Industry designations that the brokers at Benjamin Ross Group have are Association of Corporate Growth, Certified Business Intermediary (CBI), Institute of Business Appraisers, Merger & Acquisition Master Intermediary (M&AMI), PBBA, Vistage International, and Alliance of M&A Advisors (AM&AA). Only consider those with the above designations that speak to the continual educational training they go through to ensure that they are serving their clients with the best possible knowledge, philosophy strategies, and ethics. Business brokers should also have a basic understanding of legal and financial issues. Buying and selling a business involves understanding and addressing the issues in these areas.
3. Small business brokers in the region lack focus on confidentiality.
Professional business brokers will be dealing with a lot of confidential information about your business. Confidentiality is important, so they do not reveal this information to those who are not authorized. At Benjamin Ross Group, all potential buyers must sign a Non-Disclosure Agreement prior to us providing them any information about your company.
4. They don’t have a process for marketing businesses.
A good business broker should also be a good marketer. They need to be able to market and sell the business to potential buyers. They should have a web presence, participate in social media, and have a system in place to send Newsletters.
5. Many small business brokers in PA and NJ don’t help with financing.
A good business broker will help secure financing and will structure the deal to make it attractive to both buyer and seller. A lot of this can come down to experience and having a history of interactions with related parties. It’s taken us 30+ years to develop our strong relationships with banks, guarantors, commercial finance companies, and many other public and private lenders to ensure the best loan at the best rate.
Want a better broker?
While the above represents 5 ways many small business brokers in PA and NJ fail clients, the bottom line is that a good business broker will help you to map out your route in the most efficient and effective manner. At the end of the day, a professional business broker will not only help you to find your exit, but will make sure you have everything it takes to get there successfully.
Contact us today to speak with a professional business broker who can help you start the process of selling your business. If you’re interested in learning more about us, you can also download our free fact sheet, which gives you further information about our firm: