I’M THINKING OF BUYING OR SELLING A BUSINESS. SHOULD I USE A BUSINESS BROKER?

Absolutely! A good business broker can find, research, and present to you multiple ways of achieving your business objectives; and, help you identify the one that is the best fit with your business and personal interests. An experienced business broker can also help you avoid landmines, pitfalls, and skeletons in the closet. This does not mean you should not put a team together to help you. In addition to a business broker, you should always involve a lawyer, an accountant (CPA), and any other professionals that are relevant to the particular industry and business transaction.

Do your homework when selecting a business broker. Interview as many as necessary. Take a close look at their LinkedIn profile and company website. Make sure you structure their compensation so that your interests are aligned.

For a small business, a typical business broker will charge you a “success fee” that is around 10% of the sales price. Some will also charge you a monthly retainer or a one-time setup fee. A point of negotiation is whether or not the retainer or setup fee are deducted from the success fee. If you select the right broker, this will be money well spent.