When evaluating various M&A professionals and business brokers, ensure that you have complete answers to all your questions. Thus, your evaluation becomes ever so more important to selecting the right individual.
- 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?
- 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?
- 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?
- 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.
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.