Selecting Your Advisor

When evaluating various Mergers & Acquisitions Advisory and Business Brokerage professionals, ensure that you have complete answers to all your questions. Thus, your evaluation becomes ever so more important to selecting the right individual.

Credentials

• Is he/she a Mergers & Acquisitions Advisory and Business Brokerage professional, or merely a real estate broker peddling businesses?
• Is he/she affiliated with key Mergers & Acquisitions Advisory and Business Brokerage organizations?
• What is the educational background of the professional? Verifiable?
• Does the professional have a financial education, is he familiar with tax issues?
• How long has the firm been in business?
• Is the broker the principal, or simply an employee with little vested interest?
• Other than the brokerage business, has the broker run an own business before and thus, can relate to your concerns?

Value of Your Business

• How does the professional plan to establish the value of your business?
• Does he work with reputable valuation firms?
• Is the valuation simply an in-house computer estimate (with a large upfront fee)?
• Can he show valuation samples, and how do they relate to your business?
• Will the valuation firm “stand behind” the appraisal if need be?
• Will there be a “free update” of the valuation in a year from now, if needed?

Confidentiality

• How will the broker ensure confidentiality of your business?
• What is the buyer qualification process? In writing?
• Can the professional show you specific documents?
• Will you be protected from unqualified “tire kickers” and “wanna-be” buyers?

Upfront Fees

• Is the broker confident in selling your business or does he request an upfront fee?
• Does the broker charge advertising, traveling or any other costs?
• Is the broker’s work simply a performance based fee upon a closed deal?
• How much is the professional at risk with his efforts?

Marketing

• How will the firm attract buyers for you?
• Can he/she show you a marketing plan?
• Is he/she operating within a network or simply as sole practitioner?
• Does your broker share commissions outside of a network?
• Does the broker have international experience to attract foreign buyers?

These are all valid question you should raise when evaluating a broker. They are important in finding the right individual to work with you in obtaining your goals.

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Contact A Neumann & Associates, LLC

If you are considering selling your business, please contact us to learn more about our comprehensive service spectrum. Our experienced professionals will answer all your questions about selling a privately held business in complete confidentiality. Please to fill out a short form, or call us at (732) 872-6777. We will contact you directly and will never identify ourselves to your employees.