Using a business broking service offers many benefits including better pricing, rich knowledge of the market, lower risk, time saved at every stage of the process and, crucially, a better chance of getting your desired outcome.
However, with so many different mediums available to buy and sell businesses and a multitude of organisations handling the sale of businesses, it can be overwhelming when trying to select the right company for your requirements.
If you are looking to buy or sell a business, our latest blog post explains everything you should consider when selecting a provider.
The Types of Businesses They Deal With
Finding a broker that deals with businesses like yours is an important step to ensuring that they are well placed to handle your sale or investment.
If you are a small limited company with a modest turnover, your deal is unlikely to get the attention it needs from a national franchise that deals with seven-figure sales. On the other hand, small business brokers may not be best equipped to deal with your significant acquisition.
Sector specialisms should also be considered, particularly if you work in a niche or unusual industry. Demand, fair valuations, business models and growth expectations all vary from sector to sector and having a broker that understands this increases the chances of finding suitable opportunities.
At Bristol Business Brokers, our clients generally have a turnover of £200k – £10million and whilst we specialise in the technology and accountancy sectors, we have vast experience working on deals across a wide range of sectors.
Wide Network of Contacts
A well-connected broker can find opportunities through professional connections, networking groups and clients that are not openly marketed.
Having these contacts makes the broker more reputable, less reliant on paid campaigns to advertise new opportunities and often means there is a lower risk of the deal falling through.
At Bristol Business Brokers, we are well connected with businesses and entrepreneurs across the South West and beyond. With access to privileged contacts and a presence in many local networking groups, we can often find buyers and sellers through direct outreach to these contacts.
Proven and Clear Strategies
With the rise of directories and DIY business broking platforms, buyers and sellers now have more choice than ever before. As a result, it is not enough for brokers to simply rely on website listings and email lists to find prospects.
When engaging a broker for the first time, ask about the strategies they use to buy and sell businesses and how they provide added value vs. other strategies.
At Bristol Business Brokers, we have a proven and transparent approach to buying and selling businesses which includes research, preparation, marketing, selection and negotiation.
Examples of Previous Deals
Perhaps the most important quality to look for in a broker is examples of their previous work which shows you real-world examples of their strategies in action.
Whilst NDAs are often signed, a broker should be able to show examples of previous deals they have closed through case studies, testimonials, or opportunities to speak to previous clients.
Questions to ask a Potential Business Broker
If you are in the early stages of buying or selling a business and are currently engaging with companies, the questions you ask will be important to get a better idea of how they operate. Examples of questions to ask include:
- How many businesses in my sector have you sold?
- How many clients are you currently working with?
- Do you have examples of previous deals I can see?
- How large is your network of buyers?
- What size of business do you usually work with?
- How do you protect my confidentiality?
- What timeframes do you work to?
- What is your fee structure?
Warning Signs to Be Aware Of
Like any industry, business broking, unfortunately, has a small number of disreputable firms who entice new customers in with questionable promises which are then often broken.
If you are currently selecting a company, be aware of the following signs that your broker might not be the best choice for you.
- Offering a completely free service
- Making guarantees such as selling your business in a matter of days
- Advertising a secret formula or method which offers 100% results
- Pushy or persistent sales techniques
- Confusing or complicated pricing structures
- Poor communication
- Little or no examples of previous work
Find Out Morea About Bristol Business Brokers
At Bristol Busines Brokers, we understand that every business is unique, which is why we take a different approach to brokering, considering the ambitions, goals and values of all parties and not just the monetary value of the business.
If you are in the market to purchase a new business or are looking to sell your own, we can help. To find out more about the way we work with clients, give us a call on 0117 379 0117 or fill out a contact form and we will get back to you.