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How Do I Choose the Best Business Brokerage?

Article Details
  • Written By: Luke Arthur
  • Edited By: Heather Bailey
  • Last Modified Date: 17 December 2014
  • Copyright Protected:
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    Conjecture Corporation
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In order to choose the best business brokerage, you should interview several brokers and get important information about them. You will need to find out what methods the business brokerage will use and how the value of your business will be determined. You should also get some information about the experience level of the brokerage and find out how much you will be charged.

If you are considering buying or selling a business, using a business brokerage is most often the best way to go about doing this. In most areas, there are several business brokers to choose from. You need to look up the business brokers in your area and talk to as many as you can. Ideally, you would like to set up an interview with at least two or three business brokerages.

During the interview process with a business brokerage, you should find out the details of what methods will be used. For example, some business brokers advertise businesses for sale without disclosing the name of the business itself. Some business brokers use online methods to get in touch with buyers from all over the world.

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If you are selling a business, you also need to know how the brokers will determine the value of the business. A business brokerage is generally charged with the responsibility of coming up with a selling price for a business. There are many methods of business valuation that could be used and you need to make sure that the method suits you.

Another factor to consider when choosing a business brokerage is the level of experience it has in the industry. Ideally, you should work with a broker who has been in business for many years. This way, the brokerage will have many contacts in place and can help facilitate a quick sale. If anything comes up throughout the process, an experienced broker to walk you through the problem can be extremely helpful.

The last thing you should consider is the fee charged by the broker. Brokers are compensated in many different ways, and you should understand the fee structure that is being charged. Most of the time, the broker will get a certain percentage of the total sale amount. Choose a broker who charges a fair fee for the services provided.

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