What you should know about working with business brokers

And if you really knew me, you’d know that helping profitable Texas small business owners sell their companies for top dollar is a career pivot that I made in November of 2018.

In addition to being a 4th generation entrepreneur and purchasing my first business in 2010, I spent 2013-2018 building a private coaching practice
while acquiring the coaching credentials necessary to help entrepreneurs and small business owners maximize life and business potential.

All of this to say, since my career pivot last November, I’ve spent several months deep in business brokerage research and study in order to better help those looking to buy or sell. And today, I came across a really helpful article from Inc.com that I’d like to share with you because it highlights some foundational tips — for both small business buyers and small business sellers — that I think you’ll enjoy. 

The article starts off by reminding us that buying or selling a business might be the most important decision you ever make and I would tend to strongly agree. 

​My favorite tips for buyers are:

“Financials are not the only qualifier; make sure you can see yourself having fun in your new business. It has t of it your personality, your lifestyle, and your future exit strategy.”

“Always look to work with established and licensed business brokerages.”

”Ask your CPA to help you review the company’s financial information.”

My favorite tips for sellers are:

“Find out if the broker is a Certified Business Intermediary and a member of the International Business Broker’s Association.”

”Ask your broker, “On average, how long where last year’s listings on the market before resulting in closed sales?”

”Ask the broker to show you a sample of the selling memorandum (or selling book) that he or she prepares for clients so you can get a sense of the caliber of document the broker prepares and presents to buyer prospects.”

”Over the past year, what’s the average percentage of asking price received by the broker’s closed listings.”

You can read the full article here. 

And if you do, let me know:

 What tip made the biggest impression on you?