Do you want to avoid hiring a bad business broker? Actually, you should ask some important questions in order to make sure that you don’t end up hiring an inexperienced professional. Given below are some red flags that you may want to watch out for. Read on to know more.
1. Experience Counts
Actually, you should go with a professional who has a proven resume. You can contact the International Business Brokers Association to know more about the credentials of a good broker. Aside from this, if a professional wants to be an IBBA-sanctioned Certified Business Intermediary (CBI), they have to record years of experience on the job in addition to hours of classroom hours. sell my business Maryland
2. Beware of Generalists
If you think you can read up on a good broker on Google, you are right. But it’s not enough. What you need to do is make sure that your professional is the best fit for your organization. If you are just starting out, you should look for a professional who has tons of experience working for the type of business you operate. Working with a generalist is not a good idea.
3. Size Matters
It’s also important to know if the broker can handle the large transactions. For instance, if they usually handle deals of $10 million and your deal is just $3 million, you won’t get the attention you deserve, according to experts.
4. Negotiate the Fee
Usually, brokers charge a commission for their services. So, if a professional asks you for an upfront payment, know that it’s a red flag. While the average commission charged by brokers is 10%, you can negotiate it. For instance, if you know someone that will prove good for your business, you should negotiate for a lower rate.
5. Avoid Overcommitting
You will have a long relationship with the professional. On average, the broker may take between 9 and 12 months to sell a business. The broker may assemble a solid marketing package from time to time.