Choosing the Right Business Broker or M&A Firm
When you are ready to sell your business, your top concerns are finding a buyer and maximizing the company’s value. However, this is often easier said than done. It’s hard to run a business while doing everything that leads to a successful sales transaction, like verifying the buyer’s financial capacity and ensuring that the sale complies with all legal requirements.
Working with a business broker or M&A advisory firm can increase your chances of finding the right buyer at a good price, but how do you find the right broker? With our years of experience helping business owners in New York, New Jersey, Pennsylvania, Connecticut, and surrounding regions, we’ve learned the best ways to find a high quality business broker. Below we share our top tips for finding the right firm for your situation.
Utilize Your Network
Your professional network is one of the best resources for finding the right firm to help you sell your business. You probably know other business owners in the same industry or location as your own company. This is an excellent way to start the process of finding a top M&A firm. Ask them about their experiences – both good and bad – of buying and selling through a business broker. They may even be able to introduce you to a firm that already has experience selling a similar venture.
Evaluate the Broker’s Experience
Evaluate the M&A firm’s experience and history of selling similar businesses. For example, if you are selling a franchise, you can probably find brokers who know the franchise area. You can also find brokers who sell businesses of similar size and value. When you’re evaluating a broker, review the information on their website, including testimonials and review. Check on their listings to find out what kinds of businesses they’ve sold and what they are currently selling.
Ask Prospective Brokers for a Strategy to Sell Your Business
When you meet with brokers, ask them for a detailed plan for how they would negotiate the sale of your business. Here are some of the things the broker should be prepared to do for your sale:
- Perform a complete business valuation.
- Have marketing strategy to get your business in front of the right potential buyers.
- Has a screening process to make sure potential buyers are qualified and financially solvent.
- Is able to utilize a network of accountants and legal advisors who can assist with the sale.
- Can protect your confidentiality throughout the deal process.
A broker must also be upfront and transparent about the brokerage’s fees, and be able to answer any of your questions.
Evaluate A Company’s Past
You should also examine the potential broker or M&A firm’s past. Look at the following:
- Testimonials: Have other clients spoken of them highly?
- Check References
- Awards and Recognition: What awards have they won?
- Similar Business: Have they sold businesses similar to yours?
If you are considering the sale of your company, reach out to us at Sun Mergers & Acquisitions, we can offer sound advice throughout this process and guide you through the process. Call us today for more information.