What can the wrong choice of a broker lead to?

Choosing the wrong broker can have disastrous consequences on your business. Ivan K., the owner of a company producing measuring instruments, discovered this firsthand when he decided to sell his business.

After talking to several acquaintances, he hired a broker who had a real estate license, but unfortunately, she had no experience in business deals. She posted information about the sale of the company on all public resources without any regard for confidentiality, leading to the erosion of market capitalization and the loss of the business's value several times over. The broker "robbed" Ivan of hundreds of thousands of dollars.

This scenario demonstrates the importance of choosing the right broker.

Here are some criteria to consider when making your selection:

  1. Experience in business deals: The first question to ask when choosing a broker is whether the person has experience in selling similar businesses. If the broker doesn't have experience, then it's better to avoid working with them. A broker who has experience in selling restaurants may not be able to handle financial analysis, only dealing with issues of premises. It's important to ensure that the broker understands the types of business immigration.
  2. Whether the activity of a business broker is their main occupation: In most states, the brokerage doesn't require a license, and anyone can call themselves a broker by ordering the appropriate business cards. However, these people may lack experience, knowledge, and resources, and may have other jobs that are not related to brokerage. This leads to the destruction of the seller's hopes to sell their business quickly and profitably. It's necessary to demand confirmation that brokerage is their only business, and that they have the means to provide quality services.
  3. Communication standards: A broker who doesn't have a stable income from their broker's activities won't be able to respond to inquiries quickly and efficiently. When clients are negotiating with them about hiring, they will quickly answer only the first call, and then they will answer after a long delay. This unprofessional manner of communication will be used with everyone, leading to the loss of investors. If a client calls on them for help, they simply do not answer.
  4. Marketing actions to attract quality investors: Brokers who have been successfully engaged in this activity for several years and have several assets for high-quality work know how to carry out proactive advertising with a strong signal to "outshout the rest." They know how to better present a business, and good investors notice their advertisements.
  5. Agreement to participate in the sale process: Most brokers tend to reduce the circle of their responsibility due to laziness and incompetence. They may think that their job is only to bring in an investor who is willing to buy your business. However, it's important to find a broker who has the experience and will help bring your business to a high level of organization. This will increase your chances of obtaining real market value from the sale.

Как выбрать бизнес брокера 3

When choosing a business broker, keep in mind that a quality broker can keep you from disrupting your business. The quality of the broker determines the quality of communication between the parties, reducing stress in the process, better justifying the market value, and obtaining its full value from the closing of the sale. Read more about the role of a broker in selling a business here. So, make sure to choose a broker with experience, who is dedicated to the brokerage as their only business, and who can provide quality services. 

What is important to consider when choosing a business broker:

  • Experience in business deals.
  • Whether the activity of a business broker is the main occupation or attempts to survive.
  • Communication standards.
  • Marketing actions to attract quality investors.
  • Willingness to participate in the sale process.
  • A good broker will also help you make your business more attractive for sale.

Read What Our Clients Say (Google Reviews)

  • Absolutely thrilled with my experience at Florida Buy and Sell and especially working with Alyona! She was professional, courteous, and incredibly knowledgeable, making my business buying transaction smooth and hassle-free. Their expertise and dedication to customer satisfaction really stand out in the industry. Highly recommend for anyone looking to buy or sell business with confidence. A true gem in Florida’s market!
  • I enjoyed working with Alyona Safonova as a business broker, and I cannot recommend her highly enough! Alyona is a true professional with a deep understanding of the market and a talent for finding the perfect match for her clients. She guided me through the entire process with expertise and patience, always available to answer my questions and address my concerns. Her dedication and hard work resulted in a successful sale that exceeded my expectations. If you're looking for a knowledgeable, reliable, and results-driven business broker, look no further than Alyona Safonova! 💼👍
  • I've been dealing with Florida Buy and Sell in my professional capacity as an immigration attorney assisting foreign individuals in buying businesses in the U.S. I can attest to the high degree of diligence displayed by Florida Buy and Sell in all business transactions I witnessed. My primary point of contact, broker Alyona Safonova, has always been responsive to my clients' inquiries and meticulously collected all financial documents necessary for the effective transaction.