5 questions to ask your business broker
If you’re selecting a business broker for the sale of your business, there are specific things you need to know. Most business owners don’t sell their business very frequently, and therefore, it is easy to become “out of touch” with the business sales industry. If you’re new to the market and feeling a bit unsettled, here are five things to ask your business broker that can help to put your mind as ease.
1. References
When meeting a business broker, think of it like a job interview. As they would in a job interview, the candidates should be expected to provide references. Ask the brokers you speak with to provide recent testimonials or letters from vendors that can attest to their performance.
If you would like to see some of ABBA Groups recent testimonials you can do so here.
2. Past performance
Like many aspects of everyday life – past performance is the best predictor of future behaviour. We hold this belief with our staff, partners, family members and even corporate brands. The same applies to business brokers. A broker who has been in the industry for many years and only has a few sales is not nearly as active or successful as a broker who has hundreds of campaigns under their belt.
As former senior sales executives with over 14 years’ experience in business brokerage, ABBA Group’s team of business sales agents know exactly how to secure you the best possible sale price – and the most favourable contract terms possible.
3. Question their market knowledge
It is likely you will listen to numerous presentations before selecting a business broker, and if they are all good – it can be hard to decide who to choose. Market knowledge is an excellent indicator of how well prepared a broker is to handle the sale of your business. A solid understanding and awareness of other businesses for sale in the area can often make up for a broker lacking a track record. Every business broker starts somewhere. If you are in conversation with a broker who has just started in the industry, their enthusiasm and commitment to understanding and interpreting local business sales stats and market conditions could be a good measurement of their overall skill.
The team at ABBA Group have represented corporates and individuals in over $500 million worth of acquisitions, divestments, and mergers since 2016. Our track record has been consistent through all economic conditions and transcends all industry sectors.
4. Ask questions that matter to you
When interviewing multiple business brokers, they are likely to come prepared with a presentation. These presentations will cover a lot of information and should give you a decent impression of the broker’s sales skills, personality, and background. However, if you have any questions that concern you, don’t be afraid to bring them up.
When working with ABBA Group, we move into your world – in every possible way.
We invest time to ensure we fully understand your position, objectives, and options. And because the world of acquisitions and divestments is complex, we always communicate simply and without the jargon. We’ll never leave you feeling overwhelmed or confused. We will always encourage you to bring up any concerns you may have and allow us to put your mind at ease.
5. What marketing should you undertake?
Some business brokers will choose to review advertising strategies and costs at the outset. It may seem uncomfortable to discuss dollar figures so early in the relationship, but it is important. Understanding these costs and strategies will not only give you an indication of their marketing knowledge, but it will also prepare you for the practical implications of running a campaign to sell your business. At the end of the day, the business broker you select will have a great impact on the sale of your business, so make sure you are completely prepared. Ask advice from family and friends if need be.
Unlike other business brokers/business sales agents, ABBA Group advertises your business thoroughly across a vast network of overseas and local business sales websites. Our extensive listing process ensures your business is part of a global network of active buyers looking to immediately purchase quality Australian businesses across a wide range of industries. This is what we like to refer to as: “The ABBA Group Advantage”.
If you’re still unsure, you can register as a seller on the ABBA Group website and speak confidentially with one of our expert business brokers at no-cost and allow them to answer any questions you have.
