Finding the right business to buy is not that easy. Business expert Fresh•Start Business Brokers suggested it would be better if you found a business broker first.
If finding one is a bit of a challenge for you, here are some suggestions.
How to Choose a Broker
A business broker should know his business. He should also know the business he is selling, as well as what the buyer wants in a company. These are the basic information you need to know about the business broker. You can contract with him after that.
However, this might not be the information you want to have before handing him the business. You also need to know what his credentials are as well as his experience. If possible, he should be a Certified Business Intermediary.
This certification is part of the qualifications process of the International Business Brokers Association after a potential business broker has attended training and taken certification exams.
The Size and the Type
Another key information you should know about the broker is the size of business he does business in. If he has a sales portfolio of enterprises costing in the tens in millions of dollars, and you want to buy or sell a business that is worth only $5 million, then you might be talking to the wrong person to represent you.
If he were used to buying or selling businesses for $10 million, then he would be focusing on those businesses and leave you with what little spare time he has.
Another important consideration is the type of business. If the companies he brokers are fast-food restaurants, and you have a storage facility, he might not be the right broker for you. This is especially true if he does not spend the time to study your business and possible customers.
This is a question of fit and specialization. If all he sells are restaurants and food outlets, he most probably has invested a lot of time in studying the business.
Finding the right business broker is vital if you want to sell your business within weeks, instead of months or even a year.