Good brokers know how to market your business, qualify buyers and allow you to focus on running your business. But make sure you ask the right questions beforehand, check certifications and discuss his or her marketing plan before you sign with a broker. A few tips to qualifying a business broker:
- Check the broker’s background: Look for brokers who are committed to the education and credentialing offered by the International Business Brokers Association (IBBA) or other state broker associations. A broker who has obtained the IBBA's CBI (Certified Business Intermediary) designation has met the educational requirements and high ethical standards of the IBBA.
- Ask for details on how the broker will promote your sale: The broker should have a strategy on how they will advertise and market your sale, as well as the steps they will take to maintain confidentiality.
- Determine how the broker will screen prospects: A big part of the broker's job involves separating the tire-kickers from the serious buyers. Good brokers have an established screening process and usually meet with potential buyers before allowing them to proceed further down the sale path.