The premier full service business brokerage since 1989
Utah Business Consultants
Asking the right questions is important when working with third party professionals for various needs, and business brokers are a great example. Whether you're looking to buy a business, sell a business or engage in business valuation methods for any other purpose, knowing the right questions to ask a business broker can be quite valuable.
At Utah Business Consultants, we're proud to assist clients around Salt Lake City, Utah with a huge range of business broker needs, including both buying and selling a business. Here are some great examples of questions to ask a business broker as you get started with any of these processes, ensuring you'll be on the right path to success.
One of the first and most important questions to ask any potential business broker is regarding their experience level, particularly in the local market. While a broker with general expertise may be able to help you, one who has specific knowledge of the Salt Lake City area will likely be more effective at helping you reach your goals.
Next up, ensure that any potential broker offers the specific services you need. If you're looking to sell a business for a certain price range or within a specific timeline, make sure they have experience working within these parameters. Additionally, make sure they offer comprehensive support throughout the entire process – from initial valuation through marketing all the way to closing.
Another important aspect to consider is the broker's method for determining the value of your business. This can greatly impact the success of your sale, as an accurate valuation is crucial for attracting potential buyers and negotiating a fair price. Ask about their process and what factors they take into account when valuing a business. You may also want to inquire about their track record and success rate with previous valuations.
Marketing is a key component in selling any business, so it's important to ask about the specific strategies a broker uses to promote listings. Look for brokers who have experience utilizing various marketing channels such as online platforms, industry publications, and networking events. It's also worth asking if they have a database of potential buyers that they can tap into.
Additionally, it's important to discuss the target market for your business and make sure the broker has a clear understanding of who would be interested in purchasing it. They should also have a plan for reaching out to these potential buyers and highlighting the unique selling points of your business.
Just like with any other service provider, it's always useful to ask for references from past clients. This will give you an idea of their experience working with the broker and whether or not they were satisfied with the outcome. Don't be afraid to reach out to these references and ask about their overall experience, communication with the broker, and the final sale price of their business.
Before signing any contracts with a business broker, it's important to clarify if there are any additional fees that you will be responsible for. Some brokers may charge a flat fee or a percentage of the final sale price as their commission, while others may charge for expenses such as marketing materials or legal fees. Make sure to have a clear understanding of all potential fees before moving forward with a broker.
These are just some of the most important questions to ask a business broker ahead of any partnership. For more on our services around SLC, or to discuss your specific situation with our team, contact us at Utah Business Consultants today!