Selecting Your Advisor

When evaluating various M&A professionals and business brokers, ensure that you have complete answers to all your questions. New Jersey remains a State with no regulation or licensing required to be in the industry, thus, your evaluation becomes ever so more important to selecting the right individual.

Credentials
•    Is he/she a business broker, or merely a real estate broker peddling businesses?
•    Is he/she affiliated with key business brokerage organizations?
•    What is the educational background of the professional? Verifiable?
•    Does the professional have a financial education, is he familiar with tax issues?
•    How long has the firm been in business?
•    Is the broker the principal, or simply an employee with little vested interest?
•    Other than the brokerage business, has the broker run an own business before and thus, can relate to your concerns?

Value of Your Business
•    How does the professional plan to establish the value of your business?
•    Does he work with reputable valuation firms?
•    Is the valuation simply an in-house computer estimate (with a large upfront fee)?
•    Can he show valuation samples, and how do they relate to your business?
•    Will the valuation firm “stand behind” the appraisal if need be?
•    Will there be a “free update” of the valuation in a year from now, if needed?

Confidentiality
•    How will the broker ensure confidentiality of your business?
•    What is the buyer qualification process? In writing?
•    Can the professional show you specific documents?
•    Will you be protected from unqualified “tire kickers” and “wanna-be” buyers?

Upfront Fees
•    Is the broker confident in selling your business or does he request an upfront fee?
•    Does the broker charge advertising, traveling or any other costs?
•    Is the broker’s work simply a performance based fee upon a closed deal?
•    How much is the professional at risk with his efforts?

Marketing
•    How will the firm attract buyers for you?
•    Can he/she show you a marketing plan?
•    Is he/she operating within a network or simply as sole practitioner?
•    Does your broker share commissions outside of a network?
•    Does the broker have international experience to attract foreign buyers?

These are all valid question you should raise when evaluating a broker. They are important in finding the right individual to work with you in obtaining your goals.

Prior Client Assignments



Contact A Neumann & Associates, LLC

If you are considering selling your business, please contact us to learn more about our comprehensive service spectrum. Our experienced professionals will answer all your questions about selling a privately held business in complete confidentiality. Please Click Here to fill out a short form, or call us at (732) 872-6777. We will contact you directly and will never identify ourselves to your employees.