Selecting a Business Broker: How Will They Market Your Business?
Posted by Jeffrey Abbott
A good broker will create a marketing or purchasing plan for your business.
If you’re selling, the marketing plan will involve an advertising plan and information relevant to the sale of your business. But developing this plan is not the first or only task of a thorough business broker. A broker must understand you, and your objectives, and most importantly the financial results your business has generated in recent years. Pricing your business correctly, and knowing how you are willing to participate in making a transaction possible are the most important element in a solid marketing plan. Once the message and the facts are well understood, your broker should put together an attractive marketing document or package which should include recast financials and answers to questions it is anticipated that a prospective buyer will ask.
If you’re buying, expect the purchasing plan to include information about comparable listings, recent sales data, and benchmark data about the industry category the business(es) you are considering belongs to.
As the business owner or buyer, it isn’t unreasonable for you to be involved in the development of the plan. But remember: You hired a business broker for a reason. It’s okay to offer input, but you should also be willing to take your business broker’s advice.
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