Selling a business can be a stressful task, but as highly trained professionals who navigate the sale, Melbourne business brokers are there to help take some of the stress away. This being said, with a transaction as large-scale as the sale of your business, you want to ensure you get the most out of your business broker.
Whether you’re a business broker looking to upskill yourself, or an owner looking to sell, we’ve compiled a combination of soft and hard skills to look out for. To ensure your experience with, or as, a business broker operates smoothly, take these into consideration when choosing your next business broker.
Accreditations
Ensuring your broker is accredited in line with your state’s guidelines is crucial. The last thing you would want is to come to an agreement with a broker, only to later realise their accreditations endanger the successful sale of your business. Typically, most are required to either have a real estate license, or be working under someone who does. When looking for a business broker in Melbourne, ensure they are registered with the Business Licensing Authority (BLA) in Victoria. To certify your broker’s accreditations, simply search their business on the BLA registry. On your search for a qualified broker, memberships to the Australian Institute of Business Brokers (AIBB) and in Melbourne, the Real Estate Institute of Victoria (REIV) are also great starting points.
Industry experience
Whilst there are exceptions, a broker that has prior experience with the industry your business is in can be instrumental to your sale. Chances are that if they’ve dealt with the logistics and nuances in the industry, they are also privy to information a broker who hasn’t dealt with your industry may not have.
Correctly pricing your business is arguably the most crucial part of the sale process, and a broker who has dealt with similar businesses first-hand has a more accurate picture of your valuation.
For reference, here are a few questions you may choose to ask your prospective business broker:
- How many years of experience do you have as a business broker?
- Have you sold a business like mine before, and if so how did you go about it?
- How many offers did you get and how long did it take?
Negotiation
Negotiation is a crucial part of the selling process, and arguably one of the most important. A successful business broker has your best interests at heart, ensuring they are getting the best possible price and a trustworthy buyer.
A key part of negotiating with buyers is not only communicating the business’ value, but framing it in a way that matches the buyer’s needs. Additionally, less obvious factors namely lease duration, rent and renewal options must also be taken into consideration.
Going hand in hand with this is your broker’s professional network. Are they on good terms with buyers in your industry? Do they have connections to commercial lawyers and tax advisors? A well-connected broker can go a long way in the negotiation process, allowing you to get a fair price for your business.
How we can help
At Business Brokers, our brokers have a breadth of industry experience, knowledge and connections. We have sold over 350 businesses, and are in touch with more than 10, 000 buyers so you can rest assured the sale of your business is in safe hands. If it’s pricing, valuation or negotiations you’re concerned about, our team of expert brokers can help.
Contact us today to discover what’s possible for your business’ sale.