Byline: ASK SCORE The Register-Guard
Question: I have decided to sell my small business and your April 13 Ask SCORE article gave me information about getting ready to put it on the market, but how to do I select a business broker?
Answer: Peter Siegel, MBA, USABizMart.com has provided a great guide. Siegel says that the most important issue is direct and open communications between you and your broker.
You should discuss and convey your expectations to the business broker you select.
Here is a list of steps you should take:
1) Ask the business broker how he is going to advertise and get the word out about your business for sale. Make sure he allocates an adequate budget of $400 to $1,500 in advertising and marketing costs.
2) Have the business broker determine the valuation of your business before you sign a listing agreement. Ask about a cash price vs. a price with terms involved. This is critical as 70 percent of businesses that do not sell are not sold because the price was set too high.
3) Make sure your business broker is using a professional confidentiality agreement form for your protection.
4) Make sure your business broker is comfortable with selling your type, location and size of business.
5) Time kills deals. Make sure the business broker you select is responsive in getting things accomplished and moving things along. …