An involved and informed business broker knows what is going on in the market at any given time. Why else would you hire one if he or she lacks that knowledge. An experienced business broker also knows how to value a business and provide broker’s opinion of price.
A business broker should also be able to navigate a business owner through the entire process and be one step ahead of the game. Why does this matter? In order for a business owner to decide if he or she is ready to sell their business, all of the above needs to be considered.
He or she should be able to discuss the business owner’s personal goals, provide broker’s opinion on price by looking over financials, doing research and knowing what is the state of the market. Is it a seller’s market, a buyer’s market or neutral market.
The business broker should also provide the pros and cons of going to market now or when it’s more suitable in the future. This should be done without having a personal agenda and this is where ethics and fiduciary comes into play.
Discuss the steps that are needed to be taken in order for a successful close so that the business owner is aware of what it entails. A business broker should be available to answer follow up questions as they arise in a timely fashion.
As selling a business that the owner has been nourishing and growing is sentimental. The business broker should handle that with care. There are many options when it comes to selling your business. The business broker should lay them all out for you. And that way you can decide if you are ready to sell your business.