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If you want to start a new business or if you want to sell your established business, in both cases you will need the assistance of a business broker. The process of choosing a credible broker with experience is very important because they are the ones that help you narrow down your search according to your criteria.
In this article, we are going to share with you four important things that you must consider before you choose a business broker. It does not matter how popular a broker is, such as Engine Forex, etc. When it comes to dealing with them, you have to be extra conscious.
1. Qualification of Business Broker
A business broker must be a Certified Business Intermediary (CBI) because it is the basic criteria that make them eligible to work as brokers. Moreover, a business broker must also be a member of the International Business Brokers Association. Other than these basic qualifications, the business broker must also have a real estate license, especially when you are selling your property.
Along with the verification of these qualifications, you must ask the broker for how long they are working in this business and if this is their full-time job or they do it as a part-time activity. All of these together are the first and most important things that one must look for in a business broker.
2. Web Presence of Business Broker
This is another criterion that one must evaluate about the brokers that if they have an online presence or not. It shows their credibility and seriousness of their work. Now as you get their website, search for it and see how fast it loads, how convenient it is for use and the kind of business that it offers.
After evaluating the site, turn to the broker personally and ask them a few questions. You must ask them about how much traffic do they get on their website, how many offices of that broker business use that website, the number of qualified buyers in their record, etc.
3. Charges of Business Broker
The charges of business brokers vary, and the percentage of profit they ask you to share is also different. Some of the brokers have a fixed fee, and they do not ask for additional money if you generate a good sum of money later. While some brokers do not have a fixed fee and they charge an individual case when the deal is done. According to the price earned by you, they ask for their commission.
4. Recent Client Review About Business Broker
The fourth and the most important thing that you must look for in a business broker is to see the reviews of their previous clients. They will give the right idea about the credibility of that broker. You can even contact them personally to know the details of their experience with that business broker.
Keeping these points in mind, you can search for a reliable business broker to buy or sell a business.
