Charleston Business Brokers

Charleston Business Brokers is knowledgeable and experienced in analyzing, marketing, and selling businesses and does so with honesty and integrity. We take your trust in us very seriously and welcome you to compare our reputation and services with others offering business brokerage services.

Practical Considerations in Selecting a Business Broker – and ways to find the truth

Aside from the obvious requirements that your broker be knowledgeable and experienced, there are a number of practical considerations that should be addressed prior to engaging a broker.

1) Is your broker responsive? While this may strike many as an obvious requirement, the sad fact remains that many brokers are not responsive to telephone and email communications. This basic professional deficiency translates in to lost buyer opportunities, frustrated sellers and a less-than-satisfactory experience. Can you imagine your broker not responding to prospective purchasers of your business? It happens all too frequently. So how can this be tested prior to engaging a broker? Simply by making contact with the broker via telephone or email as a prospective purchaser and measuring the initial response time (it should be the same day), the efficiency in receiving a non-disclosure agreement (which should also be the same day), and the efficiency in receiving preliminary information on the business (which should be the same day as well as long as you have returned the executed non-disclosure agreement in a timely manner). The results of this exercise will tell you everything you will need to know about the manner in which the broker will be responding to inquiries on your business.

2) Does your broker place your interests before their own? This may be another obvious requirement but it is one that ultimately causes tremendous problems for unsuspecting sellers. This basic professional deficiency also translates into lost buyer opportunities, frustrated sellers and a less than satisfactory experience. Can you imagine your broker being more interested in their fee than in accomplishing the objective of selling your business? It happens all too frequently. So how can this be tested prior to engaging your broker? Simply ask the broker, while in his office, if they actively work with other brokers in selling your business (commonly referred to as co-brokerage). And the key word here is actively. If the broker actively works with other brokers for the seller’s benefit then the broker will have two items readily available to show you as follows: i) Multiple standing co-brokerage agreements with area business brokers; and ii) Written marketing plans for clients that include an action item of proactively sending area brokers information on newly listed businesses.

3) Will your broker provide the level of service that you require? Simply put, does your broker have an operational support structure in place? Once again, this is a fairly obvious requirement that unfortunately many sellers’ discover is deficient only after engaging the broker. Can you imagine working with a broker who meets you and all prospective purchasers in public places to discuss your business (coffee houses, restaurants etc.) whose phone consistently goes to voicemail and who just can’t seem to keep your records coordinated and updated. It happens all too frequently and can be avoided. So how can this be tested prior to engaging your broker?   It is simply tested by determining two facts: i) Does the broker have administrative support? Is there someone else in the office that answers the phone and supports the broker in responding to buyer inquiries, updating seller business information in a timely manner and is always readily accessible? ii) Does your broker have an established office? While home offices certainly do not carry the stigma they once had, and it would be unfair to characterize all broker’s working from their home as deficient in some manner because of this fact alone, proceed with caution if this is the case. If nothing else, an established, professional office provides tangible evidence of the broker’s professionalism and successful past performance.

4) Will your broker properly present your business to the market? This may be another obvious requirement but it is another one that ultimately causes tremendous problems for unsuspecting sellers. This basic professional deficiency also translates into lost buyer opportunities, frustrated sellers and a less than satisfactory experience. Can you imagine your broker presenting your business to prospective purchasers by the use of handwritten notes and sloppily prepared packages? It happens all too frequently. So how can this be tested prior to engaging your broker? Simply by asking the broker, while in his office, to provide you with two items readily available to the broker as follows: i) A sample seller marketing package from one of the broker’s current listings; and ii) A sample written marketing plan customized for one of the broker’s current listings. What you receive will be how your business will be presented to buyers and you must decide if that is satisfactory to you.

So What Should Business Brokers Do for You?

Business brokers are the professionals who facilitate the successful sale of a business. Business brokers provide guidance to the business owner in pricing their business, properly presenting the business to the market, and providing guidance to the business owner in structuring the sale so it makes sense for the seller and the buyer. Business brokers can find the right buyer for the business, work with the business owner and the buyer in negotiating the sales agreement, and provide counsel every step of the way until the transaction is successfully closed. Business brokers will also assist the buyer in all the details of the business buying process.  
Most businesses can be sold if they are priced and structured properly. With this said, it is important for sellers to understand that only the marketplace can determine what a business will sell for. Many factors such as the amount of the down payment a seller is willing to accept, along with the terms of the seller financing, can greatly influence not only the ultimate selling price, but whether the business sells or not.

Full Service Business Brokers Should Provide at a Minimum the Following:

• Professional Sales Packaging
• Business valuation analysis and pricing recommendation
• Business sale preparation checklist
• Guide to Selling Your Business
• Customized business sale marketing plan
• Qualification of prospective purchasers
• Review of business operations with qualified purchasers
• Review of company financials with qualified purchasers
• Intermediary in Seller and Purchaser meetings and negotiations
• Intermediary during final contract negotiations
• Intermediary during due diligence period
• Coordination of the business sale closing

Do your homework before selecting a business broker and protect your greatest asset… your business.