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Home2018-08-26T15:18:19+00:00

5 Factors to Consider When Choosing a Broker to Sell Your Business in Los Angeles

Most sellers spend hours searching for places to post their business for sale. They fear that the price they set for the business might be too high or too low. Also, they think that the business might take long before it gets a buyer to purchase it. They, therefore, decide to hire a broker to help them in this situation. Although not all brokers will help you successfully sell the business, some are genuine and qualified. They help you set a firm price for your business and also market it. To help you choose the right broker for your business, here are 5 factors you need to consider:

Qualification and experience

Experience is crucial in selling your business. If you choose a broker who has no experience in selling the business, there might occur mistakes which can lead to frustrations. However, having a broker with an experience of several years, the selling process may be easy. They have ideas on how to find a buyer and where to locate them. Also, they can negotiate with the buyer at a certain price.

As a seller in Los Angeles, you need to look for the qualifications of the broker as well as financial and accounting training and experience. With this, the broker will be able to analyze the profit and loss, balance sheet, and the tax returns which will enable you to set the right price of your business and will be really important to carefully analyze for any Los Angeles business for sale.

The broker’s interest in learning about your business

As you know, you cannot market a business without ideas of how it performs. A good broker should have the interest to know more about the business. He/she requires knowing the reason as to why you are selling the business. Most buyers are interested to know this to avoid purchasing a business that will bring frustrations.

Also, taking time to learn the business financial report as well as the expectations of the seller is crucial. With this, he/she will set a price that will not disappoint you.

The level at which the broker will protect your confidentiality

Having a broker who will not disclose your secrets to the public is essential. He will come across many details of your business such as the financial report. The performance of your business does not require to be known by everyone apart from the buyers. Hence, if you find a broker who will protect your confidentiality, he/she should be your first consideration.

Broker’s availability

There are times you need help from the broker. A very busy broker will never have time to discuss issues with you. Hence, consider one who will be there to listen to your questions and provide positive feedbacks on time. You can achieve this by asking the broker the time he/she will be available.

Great connections and the number of listings the broker is managing

Connections are vital elements in selling a business. They enable you to get potential buyers with ease. Experts like the finance who easily comes across qualified buyers can assist the broker to find a client to purchase your business.

Also, you need to consider the number of listing the broker is currently managing. If he/she has very few listings, it means that the broker is not experienced or motivated and if he/she manages too many listings, the broker may give little concentration on your business. Hence, consider a broker with moderate listings.

Connections are vital elements in selling a business. They enable you to get potential buyers with ease. Experts like the finance who easily comes across qualified buyers can assist the broker to find a client to purchase your business.

Also, you need to consider the number of listing the broker is currently managing. If he/she has very few listings, it means that the broker is not experienced or motivated and if he/she manages too many listings, the broker may give little concentration on your business. Hence, consider a broker with moderate listings.

Final thoughts

To sell your business successfully, there must be trust between you and the broker. Your relationship with the broker is more important than the business arrangements. Hence, look for a broker who is willing to listen to what you say. Also, a broker who is willing to learn more about your business should be your first consideration.

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