Are you thinking about selling your business? If you’re looking for a business broker, then you have made the right decision. A business broker is an essential component to the listing and selling of your business. This article is going to share some practical tips on how to find a business broker and specifically a licensed business broker agent in Orange County, California.
WHY USE A BUSINESS BROKER
Your business is your most valuable commercial asset. It only makes sense to utilize the services of a skilled professional. Here are a few top reasons why you are to be commended for deciding to list your business with a business broker.
- Business brokers save you time. Listing your business with a broker means that now you have someone to do all the footwork for you – creating the marketing, finding buyers, fielding questions, completing showings and working with attorneys and closing companies. What business owner has time for that?
- Business brokers reduce liability. If anything goes wrong during the transaction, your business broker has the training and experience to help fix the problem. In the age of rapid lawsuits, having a licensed business broker on your team is your first line of defense. In addition, they will make sure all potential buyers sign a non-disclosure statement to protect your confidentiality. Why take chances with something so valuable?
- Business brokers will save you money. Yes, it is true, you will have to pay a percentage of the sales price as a commission to your broker, but they are going to make sure to get the best possible price for your business. They know how to value businesses and who to market them to. In addition, business brokers are negotiation experts. All of this will help you to get a higher price than if you went at it alone. In the end, the higher price could easily cover their fees.
Okay, so we are agreed. Listing your business with a business broker is the best way to go. But how can you find the best business broker? If you own a business in Orange County, how do you know which broker is the best?
CHECK YOUR BUSINESS BROKER’S QUALIFCATIONS
First, a business broker needs to be a licensed real estate agent. But that is only the first step. Finding any top-seller real estate broker and using them to sell your business is like going to work with only your socks on. It’s only the first qualifying step.
- The business broker needs specialized training. Business brokers need more training that your average commercial broker. Look for a business broker who has either a CBI (Certified Business Intermediary) or IBBA (International Business Brokers Association) designation.
- The broker must specialize in businesses. Being an Orange County business broker isn’t something you do on the side. Selling businesses needs to be their main business.
- The business broker should show references. Their references could include list of clients that you can contact or a roster of recently completed sales (don’t expect many details due to confidentiality requirements). It is also not unreasonable to ask what percentage of his or her listings have been able to sell over the past 12 months.
CHECK YOUR BUSINESS BROKER’S RESOURCES
You are bringing your business to the table – something you’ve spent years building. What is your business broker bringing to the table? When they list your property, what will be their plan of action? Here is a minimal list of what your broker should be offering:
- Buyer network. Your broker should have a large network of connections to interested buyers – both in Orange County and out of California.
- Internet popularity. Your broker should have a website and one that can be easily found. In addition, they should have extensive internet marketing resources that will get your business listing in front of thousands of buyers that are combing the internet for deals.
- Business connections. Your business broker is only one piece of the puzzle. They should have at their disposal a network of attorneys, title companies, appraisers and other professionals that can provide assistance if needed.
HOW TO FIND A BUSINESS BROKER
Now that you know what to look for, let’s discuss how to find the best business broker. Whatever you do, don’t Google search for “business broker in Orange County ca.” You’re going to get 12,700,000 results and a yellow page-type listing of businesses that tells you nothing. Instead, try these proven solutions:
- Ask for local referrals. Do you know any businesses in the Orange County area that have recently sold? Do you know who owned them? Why not take a moment and try to track them down and find out who they used and if they would ever use them again. Here’s a word of caution: if you start asking all over town about business brokers, it’s not going to take long before people put two-and-two together and figure our why you’re asking. Keep your inquiries discreet.
- Talk to your attorney. If your attorney specializes in real estate, then they may be able to recommend a qualified business broker that could work well for you. Here’s another word of caution: just because your attorney recommends a business broker does not mean that they are necessarily the most qualified or the best fit for you. Make sure to use the qualifiers we discussed above.
- Consult an online directory. Many online directories screen their members and include customer reviews as a reference source. Directories that offer a matching service are often good choices – especially if they provide several business brokers in the area to choose from. Another online resource is the IBBA we mentioned earlier. You can search their online directory to identified IBBA certified brokers in your area. One more word of caution: Not all directories are reputable or ensure that their brokers are qualified. Make sure they meet our business broker qualifications.
Finding a qualified business broker is worth the extra time and effort. Not only will they be better able to quickly find a buyer, but you will get a better price for your business as well. And not least of all, the whole business selling transaction will be smoother and simpler. And who wouldn’t want that?