Business Brokers – How to Choose the Right One

The vast majority of small businesses are sold without the assistance of business brokers.

But if you do decide the hire a broker, here are some suggestions on how to pick the right one and how to structure the agreement in your favor.

What Business Is The Broker Actually In?

In many states there is no training or certification needed to become a business broker. In other states, brokers are required to hold a real estate license.

In these states it’s common to find real estate agents that do business brokering as a side business. If you deal with a broker who is also a real estate agent, make sure that being a business broker is more than just his hobby.

You will pay a pretty penny for the broker’s expertise and experience – you should make sure they have that experience when it comes to selling businesses and not just experience selling houses.

Questions To Ask

If you hire a broker you will be working with them closely for months to come; they will have access to your most confidential business records; the amount of money you put in your pocket at closing will be influenced heavily by the quality of work they do.

Therefore, you absolutely must check them out.

Here are some questions you should ask any prospective broker before hiring him:

1. How long have you been a broker?
2. Have you ever owned a business?
3. How many businesses similar to mine have you helped sell?
4. Can I see a blank version of your Listing Agreement?
5. What percentage of you income comes from brokering and how much from real estate (If applicable)

Ask them to provide you with references from previous clients. Then, I suggest you do something very unusual: Actually call the broker’s references!
I know a lot of people ask for references just to see how the person will react when asked (and to see if they actuality have any). But you can learn a lot about the broker’s reliability and professionalism by talking to people who dealt with that broker when they were in the exact same spot you are in.

Business Broker Fees

There are two benefits a broker can provide the business seller. First, he can locate potential buyers while maintaining the seller’s confidentiality. And second, a broker will qualify these potential business buyers so the seller saves time by not having to deal with weak prospects.

The big negative of dealing with a business broker is his fee, which averages 10-12% of the sale price. This fee is charged to the seller.

There is also a minimum fee. A very small business will pay a flat amount, typically $8-$10,000, instead of the commission. For a business worth $50,000 this minimum fee actually works out to be a higher percentage than the 10-12% industry average. But as a matter of practice, brokers usually won’t be interested in your business unless the asking price is above $100,000.

These fees are the reason most business owners choose to sell their business themselves and rely on their lawyers and accountants for the professional assistance they need.

The Broker Agreement

If you decide to use a broker you’ll be asked to sign a broker agreement which will detail the his fees. If possible, have your agreement include the following clauses:

Timing of Payments – Have it written into the agreement that the broker’s fee will be paid at the time you receive the purchase price – not at the time the sale is closed. This way, if you finance part of the sale price over a number of years, you pay the business broker as you get the money, not all up front.

Length Of Agreement – Your listing agreement should be for a limited time. If the broker locates the buyer within that time he gets paid. Be careful of lengthy agreements that lock you in with one business broker for more than 6 months. If he doesn’t produce, you want to be able to try other options. A 6 month business broker agreement is the longest you should allow. However, because selling a business can be a lengthy process, 3 months is usually too little time for the broker to find the right buyer. Try to settle on something between 3 and 6 months. If after six months, you haven’t closed the deal but you think the broker has done a good job, you’re always free to extend the agreement. But you want to be free to decide on an extension 6 months from now, not today.

Broker’s Guarantee – Include a paragraph stating that if you find the buyer, you don’t have to pay the commission. Without this clause, the broker is usually paid no matter who locates the buyer. Before signing any listing agreement, it is best to have your attorney review it to make sure your interests are protected.

business dollars business stick business sonic business widget business folder business gun business rex business duck business cache business groove business worth business omatic business gang business visual business battle business kiss business orama business member business dish business request business echo SEO Marketing Asian Beauty Products Business Information Center Nest Cam Indoor Nice Wedding Photographer channel girl Photoshop free room girl Skin Care Products Living Room Decoration Home Inspection Tips General Products Marketing Products Online Business Opportunities asia miss Infographic Design Baby Healthy Baby Accessories baby sexy Baby Furniture Baby Clothing Baby Products Baby Shop hi movie talk hi movie sex hi movie comedy hi movie sexy hi movie room hi movie show Online Home Inspector hi video movie hi vide ogood Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Online Shirt Shopping Shop jewellery and bags Online Shop Accessories Shopping Fashion Style legal adaptive legal buller legal captive legal cheapest legal clearance legal commission legal construct legal millions legal measure The Business Law Bankruptcy Lawyer Law Firms Legal Information Attorney Best Lawyers The Best Advice Lawyer Lawyer Requirements Lawyer Employment Law Reports Best Employment Lawyers interior designer web interior designer web interior designer web interior designer web interior designer web Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers business shuffle business precision business flavor business verde business intergrity business gratis business epic business anchor business clearance business eastside business corporation business feature business cellar business plum business divine business pronto business carnival business east bay business dodge business prestige business razor business atlantic business husky business remarkable business fighter business quantum business courier business construct business sparkle business rainforest business falcon business lightning business blod business downtown business curious businessafter businesss alvage business overnight business captive business amazing business abundant business designing business blender business imagine business just business surreal shoppinghusky shoppingnations shoppingremarkable shoppingfighter shoppingquantum shoppingpeach shoppingpresident shoppingsparkle shoppingrainforest shoppinglightning shoppingdowntown shoppingraven shoppingsalvage shoppingpriority shoppingmystical shoppingpermanent travellightning travellowprice travelmeasure travelmillions travelmystical travelnations travelnature travelnobel travelnormal travelnorthamerican traveloffline travelomega traveloneday travelouter travelpickup travelplatinum travelplum travelprecision travelprestige travelpriority travelpronto travelquantum travelrainforest travelraven travelremarkable travelrhino travelsalvage travelscribe travelshuffle travelsleuth travelsnapshot travelsouthbeach travelsparkle travelsunflower traveltopsecret travelurban travelyankee legalagenda legalcupcake legaldodge legaleastbay legalescrow legalgecko legalglory legalguerilla legallimited legalmystical Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Interior Designer Web Personal product Sell Products Online Marketing Product Product Research Analyst Product Research Facilitator The Food Products General Products Beauty Products Business beauty product skin care beauty salon product online product Marketing Products to Advertise online shop originals Product New Products Products Definition gigi hadid super model product marketing Personal Products Booking Apartments Definition of Apartment Secure Apartment Design Apartments girl room decoration free information Apartment Asia Apartment Girl Makeup Products Girl Clothing Girl Cookies chat girl chat adult channel asia Girl Dress Cosplay Japanese School Girl Dress apartment for girl Apartment Brokers Apartment Nice Web Hosting Themes The Best Savings Rates Shop Personal Loans Chiropractic Tables Skin Care in Centrum Cher Client Women's shoes Solar Installation Medical Weight Loss Clinic The Benefits Of Moving Insurance Online Dating Group Auto International All Medicine Reviews Fashion Clothing Style Management Consulting Real estate Fishing Games Travel Insurance Cheap Hotels and Flights Vacations and Travel Deals Travel Tips Travel Guides Travel Insurance Find Cheap Hotel Discounts Free Mobile Games Free Online Slots Games Game Mania Shooting Simulator Game Online Educational Games Play Free Online Slot Machine Games Online Games For Kids Free Online Learning Games and Apps Play Boat Games Online Free Mobile Games Download Free Games Free Online Slots Games Shooting Simulator Shooting Simulator Game Online Educational Games Play Free Online Slot Machine Games Online Games For Kids Games and Apps Free Online Games Best games for Android Download Free Games Best Logistics Software Best Application Comparison Shipping Software Solutions Logistics Management Software Systems Software Developers Software Engineer Software Developer Education Android Software Applications Most Popular Software Applications Cell Phone Monitoring Software Software Technology Technology Applications Phone System Software Information Technology Spy Phone Technology download Smartphone Spy Phone Technology Logistics Software Systems Software Developer Education Android Software Applications Cell Phone Monitoring Software Technology Applications Shipping Software Solutions Shipping Software Solution Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers Find Web Developers fashion world fashion bible fashion jobs fashion designer fashion art fashion apps fashion advice fashion brands fashion books fashion buyer fashion courses fashion capital fashion clothes fashion dresses fashion events fashion editor fashion fair fashion history fashion ideas fashion industry Veterinary Products Animal Feed Supplement Pet Shampoo Pet Collars Veterinary Drugs Pet Leads Veterinary Instrument Animal Feed Supplement Animal Calcium Supplement Antioxidant Supplement Pet Collars Chain Collar Flat Collars Pet Collars By Material Pet Care Products Shipping Software Solutions World Wide Technology List of Information Technology Master of Technology in IT Software Quantum Digital Forensics Forensic Technology Software Reference Library What Is Technology World Wide Technology List of Information Technology IT Staffing and Solutions Master of Technology in IT Software Quantum Digital Forensics Forensic Technology Software Reference Library teachers for technology Science Education Cell Phone Monitoring Software Software Technology Technology Applications Best Application Comparison Technology Definition Technology in Business Technology in Education Technology in Medical Technology Software What Is Technology Technology Software the best online casino online casino games Best Gaming Experience Play Online Casino Games Online Casino Gambling Casino best casino gambling Slots gambling Online Casino Reviews The Best Online Casino Play Online Casino Games Play Online Casino Play Online Pokies Real Money Slots Online Slots and Casino Play Online Slots Real Money Casinos Play Slot Machines Online Real Casino Jackpot Party Casino Slots Real Casino Slots Apps Online Lottery Games Heating Systems Home Automation Home Security Products Home Automation System Building Supplies Building Designer Building Consultants Bathroom Accessories Appliance Repairs Equipment Hire Extensions & Additions Floor Coating Products Furniture Removal Garden Maintenance Garden Designer Interior Designer Interior Decorating Kitchen Design Landscape Construction Landscape Design Project Management Landscaping & Gardening Patio Cover Installations Tile Suppliers Home Access Control Home Alarm Systems Home Intercom Systems Home Security Card Access Plumbing Installation Home Entertainment System Home Improvement Mistakes Home Improvement Leads Home Improvement Tips Home Improvement Grants Home Improvement Stores Home Improvement Projects Green Home Improvements real estate houses for sale property for sale property sales buying a house homes for rent commercial building rental properties commercial real estate commercial property real estate property real estate companies apartments for sale real estate business business property commercial space house real estate real estate listings house listings education law education loan education library service education meaning education personnel education technology Natural Health Magazine Bedroom Designs interior design ideas bedroom Premature ejaculation Health Tonics Herbs Natural Health Magazine Electrical System Vehicle The Shop Bulk Online Premature ejaculation www.777chat.info www.777good.info www.twshowkiss.info www.twtalk080.info www.twavtalk.info www.twshowlove.info www.twavsexy.info www.twavroom.info www.twavmovie.info www.twsexy888.info www.twsexyadult.info www.adult506.info The Legal Adviser www.twavshow.info www.twavnice.info www.asia222.info lawyer Legal advisor The Lawyer Portal good tube Drug Abuse Information Travel Guides Hotel and Travel Corporate Apartment Apartment For Rent Apartment Finder Grand Apartments Great Apartments Apartment Guide Find Luxury Apartments Apartments Interior Design Interior Design Classes Apartment Therapy Interior Design Firm Small Apartment Design Apartment Information Apartments General Information Perfect Studio Apartment All Apartments Ideas Furnishing Small Apartments Apartment Search Apartment Security Apartment Safety Considerations in Apartment High Security Apartment Find Apartment Brokers Apartment Brokers Rental Apartment Broker Apartment Searching Apartment Budgeting Basics First Apartment Budgeting The Apartment Building Best Apartment Broker Best Apartment Agency Finding Your Apartment Finding Apartment Find a Cheap Apartment Furnished apartments Find the Right Apartment tips best apartment hunting best apartment hunting Secure Apartment Living Secure Apartment Complex download plugin Browser Plugins Internet Explorer download Browser download plugin photoshop download plugin adobe flash download plugin flash player download plugin pcsx2 download plugins download plugin youtube download plugin firefox download plugin facebook Download Firefox free Web browser Download free browser Download Puffin Browser Download Software Download Free Software Download WhatsApp Download Free Antivirus Free Online Downloader Online YouTube Downloader Program Doctors The Program Doctor Doctor of Medicine Program Doctor of Philosophy Program Doctors Skin Care Doctors Skin Care Products Education Doctor Doctor of Physical Therapy Doctor of Psychology Mental Health Doctors Medical Specialists Nutritious Milk Substitute Open Heart Alternatives Cancer: Second Opinions Penis Curved When Erect Diarrhea Solutions Severe Aortic Stenosis? Benefits of Probiotics Get Help with ED Diabetes Management Probiotic Supplements Low Sugar Dairy Drink How Drugs Rewire Brains product beuty face mask moisturizer skin care cosmetics eye cream best face cream skin care routine best skin care products face cream best anti aging cream facial cleanser anti aging cream best anti wrinkle cream skincare for men beauty products face moisturizer best eye cream for wrinkles anti wrinkle cream skin care products moisturizing natural skin care anti aging boots skin care organic skin care best wrinkle cream skin care set wrinkle cream best anti aging serum best anti wrinkle eye cream best anti aging eye cream eye wrinkle cream skin treatment best skin care eye wrinkles anti wrinkle eye cream skin care brands anti aging serum natural skin care products oily skin care natural beauty products skin cleanser acne skin care skin cream anti aging eye cream compare the market make money online market research marketing strategy management jobs what is market research research jobs marketing strategies how to get money portfolio management internet marketing market research jobs marketing companies investment companies best business ideas market analysis market research companies market researcher online poll marketing tools product marketing market research methods types of market research what is investment market research examples research analyst search marketing market report market research agency secondary market research marketing job marketing analyst market research analyst research companies market research questions how to market your business investment firms sell products online trend market research market research business online marketing jobs how to sell a product selling a company equity research analyst market research report marketing report qualitative market research internet marketing jobs market research websites market research opportunities market research analysis market research industry Heating Systems Home Automation Home Security Products Home Automation System Building Supplies Building Designer Building Consultants Bathroom Accessories Appliance Repairs Equipment Hire Extensions & Additions Floor Coating Products Furniture Removal Garden Maintenance Garden Designer Interior Designer Interior Decorating Kitchen Design Landscape Construction Landscape Design Project Management Landscaping & Gardening Patio Cover Installations Tile Suppliers Home Access Control Home Alarm Systems Home Intercom Systems Home Security Card Access Plumbing Installation Home Entertainment System Home Improvement Mistakes Home Improvement Leads Home Improvement Tips Home Improvement Grants Home Improvement Stores Home Improvement Projects Green Home Improvements Action Movies Animated Movies Top Rated Movies Most Popular Movies Romantic Comedy Movie Fantasy Movies Horror Movies Heating Systems Home Automation Home Security Products Home Automation System Building Supplies Building Designer Building Consultants Bathroom Accessories Appliance Repairs Equipment Hire Extensions & Additions Floor Coating Products Furniture Removal Garden Maintenance Garden Designer Interior Designer Interior Decorating Kitchen Design Landscape Construction Landscape Design Project Management Landscaping & Gardening Patio Cover Installations Tile Suppliers Home Access Control Home Alarm Systems Home Intercom Systems Plumbing Installation Home Entertainment System Box Office Movies Most Popular Movies Top Rated Movies Lowest Rated Movies Booking Apartments Definition of Apartment Secure Apartment Design Apartments Corporate Apartment Apartment For Rent Apartment Finder Grand Apartments Great Apartments Apartment Guide Find Luxury Apartments Apartments Interior Design Interior Design Classes Apartment Therapy Interior Design Firm Small Apartment Design Apartment Information Apartments General Information Perfect Studio Apartment All Apartments Ideas Furnishing Small Apartments Apartment Search Apartment Security Apartment Safety Considerations in Apartment Garden Maintenance developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web developers designer web