How to Choose the Right Business Broker in Connecticut

Successfully growing a business to profitability is a herculean task. In Connecticut, the average entrepreneur or business owner who manages to pass the task looks forward to the reward of selling that business for a good price. However, selling a business for the best price requires the services of a seasoned business broker and finding a competent business broker in Connecticut who will be honest and offer good customer service can often be a difficult affair. If you are one such business owner who needs help selling your business in Connecticut, here is how to choose the right CT business broker.

Collate Your Options

To make the right choice, you need to know what your options are. Typically, people speak positively about competent professionals whom they’ve worked with and will effortlessly recommend them. Ask for referrals from fellow entrepreneurs who have sold their businesses in the past and from financial planners, estate attorneys, accountants, or any other business professionals who might have related knowledge. Once you have a list of business brokers in CT, you will be able to whittle out the right business broker for your business.

Find out More About Your Options

With the first step complete and your list of CT business brokers collected, you can begin to

screen through the options so you can make a shortlist of brokers to actually speak with. First, do a quick search on the internet for the companies and their profiles. Do these companies have websites? Do their websites have adequate information on the company, its principals and their working experience? If not, business brokers of that nature should be put at the bottom of the list immediately.

After an initial inspection of their web presence, you can ask further, more important questions; how long have they been practicing and how many business sales have they successfully brokered? Do they have experience with financial and tax-related issues? Are they well spoken of, with a reputation for honesty and competence? These questions are essential to your deciding who on your list to shortlist and go into conversation with.

Ask Your Shortlisted Candidates the Right Questions

Having screened through your first list of options and finding potentially suitable business brokers, you will need to have actual discussions. When you do, it is necessary to ascertain that they are capable of bringing your business to the market and handling the sale with competence. There are a number of questions you can ask to help with this. Do they have plans for valuation that you can see? Will they be setting an arbitrary value for your company or will an independent third-party valuation firm be conducting the valuations? Do they have a marketing plan in place to attract buyers discreetly? Is there a written process for qualifying potential buyers?

Consider Their Costs

The job of a Connecticut business broker is important and they typically request between 10%-15% as commission fees of the gross sale value of the business. This is not set in stone as negotiations can arise based on the value of the business. However, any broker who attempts to charge higher than this margin should be questioned heavily. Likewise, business brokers who ask for large advances/retainers should also be avoided.

Having built a successful business and taken it to profitability, the reward of a good sale is something you deserve. Follow the steps in this guide and make sure you choose the right business broker in Connecticut.