How to choose the right business broker in New Jersey Published October 29, 2019 | By Achim Neumann, President Growing a business in New Jersey, as anywhere, is a monumental task. However, well-managed and organized businesses have many opportunities to succeed. Eventually, those businesses will be transferred to other people, whether they be family, investors, etc. To facilitate this release process, the services of a business broker will be required. If you are in New Jersey, have successfully grown your business and are looking for a business broker in New Jersey to help you sell your business, below are some questions to consider so you can select the right one. Review The Stated Experience and Credentials When trying to screen for the best business broker in NJ, it is advisable to look first to the brokers’ credentials and past clientele. Are they members of a professional Mergers and Acquisitions and Business Brokerage community, or have most of their past transactions been real estate related? When did they begin their brokerage practice and how many successful mergers or acquisitions have they facilitated in recent years? Can you find information about the principals of the company on their website? Find Out How They Plan To Conduct Valuation In order to sell a business, its value must first be ascertained. What plan does the NJ business broker have for carrying out the business valuation? Are there documented past valuations of related businesses that can be shared with you as a sample? Does the broker have an in-house valuer that generates a pre-planned estimate or do they partner with a reputable third-party valuation firm? If the answer to this question is the latter, would the valuation firm be willing and able to defend its business valuation in court if it ever became necessary? If the sale process took longer than expected, would the firm be willing to update the valuation or will you be charged an extra cost for this? Ask About Plans For Marketing Once the broker has explained how a business valuation will be conducted, you can begin to see how marketing will be strategized and carried out. As you have worked hard to grow your business, it should be essential to you that the business broker attracts the types of buyers that you would want to sell your entrepreneurial child to. Is there a marketing plan in place and can it be shared with you? Has the broker built a network in your industry that will allow it to access the right buyer pool? Will the broker be able to market your business while applying discretion at all levels? How will potential buyers be pre-qualified before entering talks with you? Talk About Fees On average, the commission fee charged by a New Jersey business broker is between 8%-15% of a businesses’ sale value. The percentages tend to be lower as the sale price goes higher. Can the broker conduct the process from beginning to end and then collect a fee, or does the broker require an advance? If trying to find the right business broker in New Jersey, the questions above will highly improve your chances of success. Choosing a good business broker will take you a step further on the road to selling your business for the amount and terms you deserve.