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3 features to look for in a business broker [video]

WRITTEN BYJames Price | JPAbusiness

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You don’t need a broker to sell a business, but having a good broker or experienced advisor to assist you can add value at a number of points along the selling process.

When choosing a broker to help sell your business, there are three key elements to look for:

  1. Experience in your industry and in selling businesses of your size and ‘shape’
  2. Project management expertise
  3. Communication skills.

 

In order to determine whether your potential broker has these attributes, I suggest asking for evidence.

Ask them for:

  • examples of businesses like yours they have sold
  • the shapes of the deals they’ve done with these businesses
  • an indication of the process they intend to implement to sell your business
  • details about their approach to communication between the parties and how they go about facilitating a deal
  • details about the level of reporting – verbal, written, formal and informal – that will be provided as part of the sale process to keep you abreast of progress
  • referees you can speak to i.e. business owners they have worked with to sell their businesses.  

How does a broker add value?

As mentioned earlier, if you're looking to sell a business, you don't necessarily have to engage a broker, but a good broker or advisor can add value.

In our blog, 'How can a broker add value when selling a business?' we examine four elements of selling a business and show how a good broker can provide additional value at those stages:

  1. Determining what the business is worth
  2. Preparing the business for sale
  3. Describing the business opportunity to prospective purchasers
  4. Progressing the sales process.

We've also included a number of client examples to illustrate how this works in practice.

If you would like support or advice regarding any aspect of selling a business, contact the team at JPAbusiness on 02 6360 0360 or 02 9893 1803 for a confidential, obligation-free discussion. 

 

 

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About James Price | JPAbusiness James Price has over 30 years’ experience in providing strategic, commercial and financial advice to Australian and international business clients. James’ blogs provide business advice for aspiring and current small to mid-sized business owners, operators and managers.