Four questions to ask your business broker

Are you considering tapping the expertise of a business broker? It’s a wise choice. Turning the task of selling your business over to a broker can help with those moments in which you might be tempted to accept a deal too early in the negotiating process.

Here are four great questions to ask a prospective business broker:

1. Can you provide an explanation of your valuation methodology? Request information from your broker regarding the specific valuation methods that will be used to determine current market value.
2. What are the techniques you use to market your business? Each business brokerage is a little different in their approach and marketing philosophy. While small variations in sales tactics are expected, steer clear of a broker who appears to make sweeping statements or grandiose promises. The key to successfully closing a deal depends upon the experience of the negotiator working on your behalf. Make sure it’s a good match.
3. What is your track record for timely closings? Inquire about the average amount of time it takes for a business sale to close.
4. How many days before the listing will be placed on the market? Again, brokerages will differ in their techniques and timing of placing the business on the market, so you’ll want to be sure that their processes match your expectations. It’s worth it to have a conversation to work out any issues ahead of time.

A business broker should be judged on customer service, too. Look for a professional with a responsive, helpful attitude — one that doesn’t keep you waiting, but does keep you informed of the process all the way to closing day.