How to Choose the Right Business Broker in New York for You!

The business environment in New York is expansive, with the City alone contributing 8% to the total GDP of the US. For this reason, lots of small businesses are created on a regular basis and many of them grow to be successful in their verticals.

Inevitably, those viable businesses will eventually be transitioned to competitors, family, sold off, etc. so a business broker is required. If you are a business owner in New York looking to sell your company, here are some questions you can ask to help you choose the right one.

Take a Look at the Credentials and Experience

The first thing to do when looking at possible business brokers to work with is to consider their credentials and experience. Are they certified in the field of Mergers and Acquisitions and Business Brokerage, or is most of their work in the field of real estate? How long have they worked in business brokerage and how many business sales have they successfully brokered in the past? Do they have a viable website with the background of their principals?

Ask About Valuation Plans and Practices

Before a business can be sold, its value must be properly determined. Does the broker have a plan for handling the business valuation and are there past samples of valuations related to your business that are available for you to see? Does the broker partner with competent and reputable firms or is their idea of valuation simply offering an in-house estimate? If using a 3rd party, accredited valuation firm, how confident will the firm be of the valuation and will they be able to defend it in court if needed? If the business sale process goes on longer than expected, will updates to the valuation be provided at a marginal small fee, or is it a fully added cost?

Discuss The Broker’s Marketing Plans

With an understanding of how to value a business, the next set of questions to ask a potential business broker in New York have to do with marketing. Your business is important to you, and you will need to know how the broker will attract the right type of buyers for it. Does the broker have a plan for marketing and can the plan be shared with you? Does the broker conduct operations within a network, which will give access to a bigger pool of buyers? Can the broker find buyers for your business while maintaining complete confidentiality? What are the buyer pre-qualification requirements implemented by the broker?

Discuss Fees

Business Brokers in NY or anywhere else typically charge 7% – 15% from the sale price of the business as a commission, with larger transactions typically receiving a lower fee. Is this broker certain that (s)he has the capacity to sell the business or is an advance/retainer required? Will you be expected to cover the cost of marketing, traveling, and other expenses in separate payments? Will any unexpected charges suddenly appear after the sale has been completed?

The questions above will prove invaluable when trying to choose the right business broker because they show you who the most competent broker is. Choosing and working with a competent business broker improves the chances that you will achieve your goal of selling your business for the best possible price and terms.