7 questions to ask your broker
You mustn’t allow your business broker do everything without getting to understand a lot of things by asking the right question. You are free to ask any reasonable question as long as you are paying him or her. And what every good broker does is to carefully and clearly answer your questions. Below are some of the questions that you need to ask so that you wouldn’t be at a disadvantage position when buying or selling with the aid of a business broker.
- How often can I expect to hear from you?
There should be good communication between you and your business broker. This is vital because you need to be aware of every step of the business transaction which is why you need to know when you are going to hear or see the broker again.
- Will you provide a comparative market analysis (CMA) of similar businesses currently for sale and ones which recently sold?
It is your right to know about the comparative market analysis of other businesses in similar position that are up for sale with the one you are about getting.
- How will you market my business to find buyers?
The details of how your business would be marketed should be explained to you in the simplest way without the use of jargons of real estate or business terminology that might be confusing. Sit down with your business broker and learn everything about the details of the marketing.
- What makes you better than your competitors?
You must know the edge you have over your competitors when selling or buying a business. This would help you strengthen your grip and maximize this strength so that it would work to your advantage
- Do you cooperate with other business brokers?
This is one question that is imperative to ask your business broker. If this questions is not properly handled there might breach of confidential agreement. And so make sure you sought the pros and cons of this
- Are you a member of any professional business broker associations?
A good business broker should join a professional body. A good business broker should join a professional body that regulate his or her activities. And so, this is a good question to ask.
- What are some things you cannot or will not do?
You have to be aware of what where to stop and what to do during your association with the business broker.