Buying or selling a business is a significant event; and if you live in southeast Texas, hiring an experienced Houston business broker is key to a successful outcome. With all the excitement and anticipation of buying or selling a business, there is also a lot of hard work required. However, in the end, the payoff will be worth it. Selling a business is more like sending your youngest off to college. You feel proud of your accomplishments, somewhat sad, but excited about beginning a new chapter in life; and a business broker can help make any transition smooth.
Benefits of Working with a Business Broker
It’s good business sense to hire an experienced Houston business broker when buying or selling a business. The right business broker will:
- Have the experience and contacts
- Thoroughly understand the process and manage the transaction
- Maintain confidentiality
- Be objective and straightforward
- Know the market
Most importantly, a good broker will save you time and money, and get you a better deal.
Tips on Choosing a Business Broker
- Background and credentials. A full-time business broker is preferred, as most don’t want someone who occasionally sells a business. See if the broker has obtained the CBI (Certified Business Intermediary) designation conferred by the International Business Brokers Association. This certification means the broker has met the high ethical standards and educational requirements of this association.
- Industry Experience. Does the broker have any experience with your industry? Without this experience, the broker may not have the necessary contacts.
- Realistic Expectations. If selling your business, ask if the broker will get you top dollar. An experienced broker will do better for you than you’d do on your own, getting you the best price and terms. However, you should receive an objective analysis of the probable outcome, not a pie-in-the-sky promise.
- Where do most of the broker’s referrals come from? A broker’s referral network is critical. A broker with a lot of contacts will probably get many referrals from accountants because anyone selling a business needs to establish valuation and understand tax consequences. Lawyers and past clients are other good referral sources.
- How does the broker market his/her own business? Do they use social media and other online strategies, or only the more traditional methods? It’s not realistic to expect your business will be marketed more effectively than the broker’s own.
Whether you’re buying or selling a business, call Del Lingco International. Established in 1958, our Houston business brokers have the experience and contacts that will make all the difference. Call 713-783-5800 to learn more.Tags: houston business broker