Q. How do I choose a Business Broker?

A. You will be working closely with your business broker for six to 12 months or more, so you should choose a business broker who you feel comfortable talking to about your business and financial situation. You should also look for a business broker who has business ownership experience. The broker should have extensive personal contacts in the general community as well with other brokers. Be sure that your business broker shares listings with other qualified business brokers in the community.

Q. What can Business Brokers do?

A. As a seller, business brokers can help you decide how to price your business and how to structure the sale of your business so it makes sense. They can find the right buyer for your business, mediate negotiating, act as your business consultant, and work with you every step of the way until the transaction is successfully closed. They can advertise your business for sale discretely. As a buyer, they can search for a business that meets your needs, assist you in making a successful offer on a business and create a purchase agreement that protects your interests.

Q. What can’t Business Brokers do?

A. A business broker is not a magician who can sell an overpriced business. Most businesses will sell if priced and structured properly but only the marketplace can determine a business’ true value. The amount of the down payment you are willing to accept, along with the terms of the seller financing, can greatly influence not only the ultimate selling price, but also the success of the sale.

Q. Do I need an attorney?

A. It is a good idea to have an attorney review the legal documents, but the attorney must be familiar with the business buying and selling process and have the time available to handle the paperwork on a timely basis. Most business brokers have lists of attorneys who are familiar with the business buying process. Your attorney should look after your interests, but in working for you, should ultimately abide by your wishes.