Business

Avoid the Costly Mistake of Choosing the Wrong Business Broker

Selling a business can be a complicated process. There are over 500 actively licensed business brokers in Australia, choosing the right one can mean a big difference to your final sale price. When selling a property you may engage a real estate agent, when it comes to selling a business you want to choose a business broker who has the experience and can successfully guide your business sale to settlement. 

As a business owner, you know how unique your business is. The challenge when selling a business is finding the right buyer and obtaining an optimal sale price. Whether it’s a cafe, mechanic, cleaning business or a multi-million dollar construction company – choosing the wrong broker can lead to some massive errors, that are difficult to reverse. 

Business brokers may specialise in a certain industry such as hospitality, tourism, transport, medical etc or they may sell a variety of businesses. It’s important when evaluating a business broker, you take into account their previous experience selling businesses similar to yours and that they have a good style of communication.

How to Review a Business Brokers Experience

1. View their current listings

View a business brokers current listings on Bsale to see the type and size of businesses they are currently selling. It will help you assess whether they are handling similar types of businesses and the areas and regions they operate in. 

2. Ask Questions

The best way to assess a business brokers skills is to have a conversation with them. We have put together a list of 16 questions you could ask a business broker to get to know them and their services. One of the most important roles of a business broker is to effectively communicate between the buyer and seller, so communication skills are very important. 

3. Check their Licensing and Memberships. 

In Australia, we have a number of professional organisations that are established to provide support and improve the performance of their members. The AIBB is the peak body in Australia for business brokers. They continually reviewing training standards, making Government recommendations and provide a level of quality assurance. Business brokers can belong to a number of relevant organisations such as the AIBB and Real Estate Institutes in each state (e.g. NSW) 

4. Review their Advice

Business brokers who are leaders in their field will provide advice and information for business owners. They have years of knowledge and experience and want to guide business owners to make well-informed decisions. Check out social media, youtube, industry publications and the brokers’ website to see what advice they are currently providing. 

5. Cross-check Answers

To ensure the business broker is providing current and accurate information in your discussions you will need to do some research. Review the websites the broker appears on, speak to previous vendors and look for online reviews. It’s important to perform your own checks. 

6. Compare

Finding a business broker who has experience is one thing, but do they have that X-Factor to get top dollar for your business. You will need to compare a number of business brokers to see who is the right fit. 

It may take 6-12 months to sell a business, so you will be in communication with your broker during this entire period. You need to be confident in your decision as they will guide you through the entire process. You want to know they will do what is best for you and your business. 

In the end, you should be happy with your decision and proceed confidently with your business sale. Choosing the wrong broker can mean your business sits on the market for too long, is priced incorrectly or your sale simply isnt appearing in front of the right people. So do your research on sites like Bsale before you select just any business broker.
Vanessa Lovie – Bsale CEO

Vanessa is the CEO of Bsale Australia which is a leading business for sale website since 2000. Passionate about small businesses and hearing the owners journey, Vanessa is inspired daily by the amazing businesses that have been created in Australia. Buying a business is exciting, we love to guide people in the right direction to find opportunities. 

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