Someday you may want to sell your business, and involving a business broker may be a viable strategy. But be careful.
Business brokers match buyers with sellers for a fee. Some brokers will charge expenses for completing work, especially if there is work to be done before a company is sold. I want to issue a warning so that everybody’s on the lookout: Unfortunately, there are some unscrupulous business brokers who are in the business, not of selling the businesses, but of preparing reports and positioning a company for sale. This can be okay if done correctly. If the business broker truly does an analysis and prepares a company for sale, it can add great value.
Sometimes, however, we find brokers are in the business of just getting businesses excited about the possibility of a sale. But then when they get involved, we see the online reviews of their clients being sold. Be careful when you’re engaging. As always, check references. See what others’ experiences have been. Ask around. Talk to some of the broker’s clients. It’s a lot like picking your lawyer, which we covered in a previous blog post.
The question is, whom do you want to work with? Do your research. Make sure before you write that check to make sure that you don’t end up with the short end of the stick.
What’s your experience with this? Do you know someone who wasted money with a non-reputable business broker? What will you do in the future to protect yourself? Join us in the comments below and let us know.
Each case is unique. Past results do not guarantee future outcomes. This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. FreeImages.com Robert Owen-Wahl.
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About the AuthorR. Shawn McBride — is the Managing Member of The R. Shawn McBride Law Firm, PLLC. Shawn works successful, private business owners in their growth and missions to make a company that stands the test of time. You can email R. Shawn McBride Law Firm or call (214) 418-0258.