Business brokers all have a system for navigating the sale of a business. Some of us were even trained in the same methodology. Let’s be real, we all have to navigate the same steps to complete the sale of a business. The good ones will prepare a business valuation before accepting an engagement to assure that they are on the same page as the seller and that they aren’t wasting their time. After all, the smart ones realize that as they are operating on a success fee basis, they will only get paid if and when the deal closes.
After agreeing to the asking price, the seller signs a listing agreement. Here again, the smart brokers will require a sole and exclusive agreement. Why? Because he knows that he will be spending considerable time ($) preparing marketing materials, writing and placing ads, screening buyers, attending buyer/seller meetings (BTW, we come to all meetings), negotiating the deal and working with the buyer to prepare an LOI, navigating the due diligence process, coordinate the deal with the seller’s and buyer’s other professionals (attorneys and accountants), closing the deal and assisting in the transition of the business. Whew, it makes me tried to just write it down.
So, having said all that, how do you know how to choose a broker? I would suggest that you select the broker based on your judgment of how good a partner in the deal he will be with you and whether he is Tiger Woods or a weekend golfer.
What do I mean by that? Well Tiger Woods will drive a ball 300 yards off a tee and finish a round of golf at say 5 below par. Most golfers take some professional training and know the fundamentals, keep your head down, keep your left arm stiff, drive through the ball etc., but still can’t drive the ball like Tiger does. Even if the weekend golfer had Tiger Woods training and gave him same clubs as Tiger, he still would not be able to compete with Tiger Woods. Some people just bring a unique skill set to their work.
We feel that we are unique business brokers and hope is that you will see us as your Tiger Woods to navigate you through the sale of your business.