Seven questions you should ask.

 1.  How many businesses have you sold?

While VR has sold over 100's of thousands of businesses to date, we’re not saying that a good broker has to sell 100,000 BEFORE they are qualified. However, they should have experience selling both personally as well as part of a network of brokers who have sold more than a few thousand sold businesses.

This may sound like a lot but we’re talking about the potentially making or losing thousands of dollars – YOUR dollars – if the sale isn’t done right. The sales process is complex and every business is different. It takes experience and knowledge on the part of your business broker to insure that the sales transaction is completed.

 2.   How many business have you sold THIS year?

This is a different question than "How many have you sold".  Many brokers have sold a number of businesses over the past 8 or 9 years, but now only sell 1 or 2 businesses a year.  Do you want to be the only business that your broker sells this year?  The problem is the industry is changing and you could be leaving thousands of dollars on the table because the broker you choose doesn’t have the proper experience THIS year.

 3.   Will you sell my business confidentially?

Most brokers “tour” your business with prospective clients. The industry average says it will take 50 buyers to find the one buyer that will purchase your business. There are only so many ways you can explain these “tours” to your employees before they see the writing on the wall. At VR, the confidential sale of your business is our number one priority. Our proprietary marketing method allows potential buyers to “tour” your business using our HD video. An on-site tower is done only after we find the right buyer and you have received an acceptable offer.  

Another important point concerns how your confidential information is handled by the broker.  How does the broker present your tax returns and other confidential information? Most business brokers routinely fax and/or email your financial information to prospective purchasers allowing for the potential release of your most confidential information to the general public, your clients and your competitors.  Our VR office has a room designed and used exclusively as a Due Diligence conference room AND we don’t send out confidential information until after we have a firm agreement in place with earnest money.

 4.   Does the Brokerage firm charge upfront fees?

While most brokers will tell you they don’t charge any money upfront, you’ll find that they do – they just call it a “packaging” or “marketing” fee. Since most business brokers don’t sell many businesses per year, they can’t afford to properly market your business unless they collect these fees up front. You’ll also find that many brokers charge for their in-house valuations. At VR for our in-house valuation is completed by experienced professionals, And it’s FREE.

 5.   How does the brokerage firm package your business for sale?

Does the brokerage firm create detailed marketing profiles as well as confidential profiles? Does their packaging involve industry information and information that distinguishes YOUR business from others within your industry? Don’t fall for the lame excuse that buyers are so abundant that there is no reason to properly package the business. With the advent of the Internet, buyers are more educated and expect more information when a business is presented to them.  Don’t settle for how it’s always been done. Expect professionalism. Expect results.

 6. Do you have an office?

Hard to believe that you would need to ask this question isn’t it? But you’ll find that most business brokers do NOT have their own office. They work from an executive suite or worse - their home.  Do you want to turn over your future and the sale of your business to someone who can’t even afford a full-time office and staff?  What kind of impression does this leave on a prospective buyer? What kind of offer will they make for your business? Think about it this way, if a business broker is working from home, how the broker presents your tax returns and other confidential information is critical to YOUR success. It’s sad to say but many brokers think nothing of faxing or emailing your financial information to prospective purchasers without protecting your confidentiality.  Do you want your most confidential documents faxed or emailed across the country to buyers or worse yet your competitors?  Our VR office has a room designed and used exclusively as a Due Diligence conference room AND we don’t send out confidential information until after we have a firm agreement in place with earnest money.

 7.   Do you have multiple brokers and agents in your office?

Why settle for just one business broker? An office with multiple agents allows your broker to take advantage of the knowledge and expertise of his fellow brokers in order to deliver the best possible deal for your business.