How to Choose a Business Intermediary!

Caution: Buying and selling businesses is not like selling real estate. While there is some standardization is the real estate world (listings, showings & trips to the title company), there is none when buying or selling a business and a huge difference exists in the expertise required to complete these transactions. A business is a living, breathing entity, with intangibles that have substantial value, not a piece of property with a known (or easily obtainable) value. When business slows; its natural that people start to look for alternate sources of income and some start trying to sell businesses by calling themselves professional Brokers or Business Intermediarys. A few tips that could help you with this very important decision:

1. Check for Certifications: This will tell you the area of expertise the person specializes in. Are they certified to sell businesses? A true Business Broker/Intermediary will have achieved 3 distinguished certifications that include Certified Business Counselor (CBC), Certified Senior Business Analysts (CSBA) and Certified Business Intermediary (CBI) . Some will be licensed or have experience in other fields (Law, Accounting and Appraisals for example) helpful to selling businesses but it will not be their primary profession.

2 Check the associations: With whom does the Broker associate? Are those associations dedicated to selling businesses? Professional Brokers know where the qualified buyers and sellers are and how to reach them. If you're a Seller, ask yourself; whom would a knowledgeable, qualified Buyer work with?

3 Visit their web site: Professional Brokers will love for you to visit their site. Take and look and see what their site is all about. Is it focused on selling businesses or is it just a button from some other industry?

4 What about Geography: Selling or buying a business requires close contact with professionals. Look at the area the Broker works; is he/she close to your business. Beware of out of area Brokers. A local Broker will know the community, its economy, and infrastructure and be better equipped to represent your business in the most positive light. In most cases, a broker can give full attention to his clients that are within a few hours drive or about a 250-mile radius. Ask the Broker if he/she will be there for each showing. Are the majority if his/her listings in about the same region?

5 Watch out for industry specializations: Beware of Brokers who specializes in selling one type of business. There are many intelligent, qualified business people who invest in various industries and Brokers who only specialize in certain types of businesses (accounting and health related are big examples) do not know how to market to a broader market of buyers. They tend to market only to related buyers (which can be the buyer of last resort).

6 Use common sense: A professional Broker will have experience dealing in the types of businesses in your community and be a long-time resident. Use caution with those who claim to be venture capitalist or investment bankers who have generously decided to offer this (unrelated) expertise to you.


Were here to help, if you have questions/concerns about choosing someone to represent you, call us anytime and well be glad to discuss the matter in private.

Good luck!