Finding a Good Business Broker

1. How do you find the right Business Broker?
When selecting a business broker find one you like and trust. Look over their resume, look at their education and previous experience. Ask how many businesses they have sold. " Ask the broker for references and call those references. Ask the broker to what professional organizations does he or she belong. Meet them in their office. Is the office a professional environment backed with all of the necessary marketing and sales resources. Did they educate you on the buying process? Check out their website. Was it easy to find? Was it easy to use? Does it project a professional image? Sometimes the broker's web site is the most efficient way to look over a large number of businesses for sale. Ask to see the office operations manual, look at the policies, procedures and forms - are they professional? Ask to talk to the brokerage owner and learn if he/she spends 100% of their time managing and supporting the brokers, or is he/she just another competing broker.

2. Build a relationship with just one broker.
Many times finding the right business is a result of being in the right place at the right time. Some of the best businesses for sale never become available to the general public or by the time they become public knowledge another buyer already has an offer in the works. Why, because business brokers have close working relationships with many buyers (we call these buyers, buyers in queue) and consequently, those buyers are the first to hear about new businesses. Therefore, if you want to hear about new businesses first, concentrate on building working relationship with just one broker. Remember, they can sell you any business offered by their brokerage and most of the time any business offered for sale by most other brokerages. At Business Team, many of the new businesses sold are sold to buyers in queue. Become your brokers #1 buyer in queue.

3. Find a brokerage with a large number of businesses for sale.
A large number of businesses for sale gives you a larger selection from which to select. Ask how many businesses your broker's brokerage has for sale. One of the best ways to learn about what kind of business makes the most sense for you is to look at a variety of businesses for sale. A good business broker should be able to expose you to a large quantity of businesses for sale; having a large quantity of businesses for sale helps you decide which business is the right business.

4. How accessible is the broker once you agree to let him / her assist you in buying business?
The lines of communications should always be open. Your business broker is representing you, acting on your behalf and should be available for consultation as required. It's reasonable to expect that your broker will return messages or emails promptly and that you will be given regular updates. This is a good question to ask when talking to references.

5. Is your broker licensed?
In California and other states, business brokers must have a state real estate license. Why? A real estate license forces the broker to understand the laws of agency and understand his/her fiduciary duty to you, the Buyer. Also, many times the real estate is included in the sale of a business.