We mentioned in the previous post that you need to watch for several pitfalls when hiring a business broker to search for a suitable business. Buying a business is time consuming and tiring process. You don’t want to waste your and broker’s time looking for business that is not suitable to you.
So how can you make sure you are hiring the “right” broker for your needs? Below we have listed 10 questions you can ask the broker before making decision to engage him/her.
- How long have you been working as a business broker?
- How many businesses have you bought for your clients in the past 2 years?
- How long did it take on an average to buy business for your previous clients?
- Do you focus on particular industry or size of the business?
- Do you charge a commission to the buyer?
- Do I have to sign exclusive agreement with you for certain period?
- How do you find businesses that are available for sale?
- Are you a member of industry associations or networking groups?
- Do you help with negotiations and document preparation during buying process?
- How do you resolve conflict of interest if you are representing both buyer and seller in a particular transaction?