Tips for ensuring business brokerage success

The sale of a business takes some research work and getting more familiar with the brokerage process. That said, it’s always best to work with a certified business broker, especially if your business is small and you want to find the best potential buyers. A broker will aid you immensely in dealing with the complex nature of sales, explains seasoned entrepreneur Tyler T. Tysdal.

In other words, if you are to ascertain that you go through the selling process efficiently and gain the best market value for your hard work, it’s advisable to connect with the right broker. But this begins with diligently examining your potential broker’s credentials, background, and experience. You must not take anything for granted; look at all the info available on him from the Better Business Bureau, for example. Check the references there and see how the broker has done in previous sales of the type of business as yours.

It’s also most recommended that you do not settle for moonlighting agents. Go for someone who is doing full-time brokerage work, as they will have a fuller, more comprehensive know-how of the process of valuation, not to mention a more expansive network of contacts. When doing your research, get referrals from trusted sources like lawyers and accountants. We suggest making good use of referrals from the International Business Brokers Association (IBBA), as this nonprofit works with many business intermediaries throughout the world.

Aside from avoiding brokers that insist on huge upfront fees (the rates usually range between 10 to 15 percent commission on your company’s sale price), it’s always best to avoid rushing the selling of your business, to begin with. Remember that the brokerage process is a complex transaction; make sure you have ironed out all the kinks and are clear on everything before pushing through, advises Tyler T. Tysdal.

Entrepreneur and real estate investor Tyler T. Tysdal is heavily involved in the Entrepreneur's Organization and has received the Denver Business Journal's 40 Under 40 award. He is the Managing Partner of Platte Management. For more reads on sports and business, check out this page.