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Top tips for finding a tried-and-trusted business broker

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Are you planning to buy or sell a business this year? If so, then you may be thinking of hiring a business broker to guide you through the M&A process.

But, with so many to choose from, how do you go about finding a reliable and experienced broker who can help you maximise the value of your deal while minimising hassle?

To answer this crucial question, we’ve put together some top tips and strategies that will help you find a broker who will make this life-changing transaction as smooth and straightforward as possible.

But first, let’s take a quick look at the role of a business broker and find out why they can be such an asset as you embark on the journey of buying or selling a company.

How a business broker can help

How a business broker can help

Business brokers offer a comprehensive range of services aimed at both buyers and sellers.

If you’re selling a business, a broker will assist you with sourcing and vetting potential buyers, ensuring that you are put in contact with the people who would be the best fit for your company – and verifying that they are financially capable of taking on the responsibility.

Business brokers can also help you market your business to those would-be buyers, creating high-quality bespoke marketing materials that show your business in its best light while retaining absolute anonymity.

These marketing materials typically consist of an initial ‘teaser’ document, which reveals the essential facts and figures about your company (while keeping its identity confidential) and an Information Memorandum. The latter goes into a lot more detail about everything from service lines to client base and, of course, finances, giving interested buyers a holistic view of your business operations and its future potential.

Once you have a buyer who is keen to proceed with the acquisition process, your broker will continue to oversee every stage of the deal, assisting with negotiating initial terms of the deal and with the due diligence phase of the transaction. They will also continue to mediate between you and the buyer, smoothing the way to what will hopefully be a successful sale and addressing any concerns on either side.

When it comes to buying a business, a broker will perform similar vital services, but this time focused on making an acquisition. Drawing on their extensive network of contacts, they can unite eager acquirers with a range of businesses available for sale that suit the buyers’ specific acquisition ‘profiles’. They will then go on to oversee every aspect of your purchase, from conducting accurate valuations of the businesses you want to buy, through to handling crucial paperwork and negotiating on your behalf.

In short, whether you are buying or selling a business, a reliable and experienced business broker can make all the difference to a deal’s success – all while saving you significant amounts of time, effort and stress into the bargain.

Top tips on finding the right business broker

Top tips on finding the right business broker

Now you know what a business broker does, it’s time to explore the factors you need to consider that will help you find the best broker for your upcoming business sale or acquisition.

These include:

1.     Their track record

One of the most obvious aspects to look at when you’re considering hiring a particular broker is their track record of successful deals. Their website should include client testimonials and reviews which can help shed some invaluable light on the quality of the work they have done in the past.

You can also ask about any deals they’ve successfully brokered within your sector, as this will help to provide reassurance that they can handle your own transaction.

2.     Their network of contacts

Having a substantial network of contacts spanning various industries is an essential requirement for any tried-and-trusted business broker. After all, you need to be sure that, if you hire their services, they can put you in contact with the right people – whether you’re looking for a particular profile of buyer or seller.

3.     Their expertise in your industry

How to find the right business broker

A broker that has plenty of expertise and industry-specific knowledge is going to be best placed to guide your deal through from initial contact to successful completion.

Crucially, they can also draw upon this specific knowledge to provide you with crucial advice and insights that can help make your purchase or sale of optimal value while minimising any potential obstacles.

4.     Communication and confidentiality

Clear, transparent communication is an essential quality for any business broker worth their salt. After all, M&A activity can go on for several weeks or months, depending on the complexity of the deal, so you need to be sure your broker will keep you in the loop and maintain open channels of communication between you and your buyer or seller.

They also need to be able to guarantee anonymity for both parties. If you’re a seller, this means drawing up NDAs for buyers to sign before they can find out more about your business, as well as creating confidential marketing packs that promote your company without revealing sensitive information.

If you’re a buyer, this means ensuring you sign those aforementioned NDAs – and guaranteeing that no information regarding the transaction is made available to third parties outside of the deal.

5.     How holistic their services are

Not all business brokers provide the same level of service so it’s a good idea to search for brokers that offer comprehensive services spanning every aspect of the acquisition. This includes being able to provide essential legal and financial assistance, which will typically be done through trusted firms the broker is affiliated with.

Harris Acquire – at your service

Harris Acquire business brokers

Hopefully this helpful guide has provided you with everything you need to know to find a tried-and-trusted business broker who can oversee a successful deal on your behalf.

If you’re considering a business sale or acquisition in the near future, here at Harris Acquire we would be proud to be a part of the process, helping you achieve optimal value while minimising challenges.

For interested acquirers, we offer an Acquisition Finder pilot which includes a 30-day money-back guarantee for your peace of mind. If you’re a seller, we have an impressive track record of helping business owners find the perfect buyer to take over their company and ensure its ongoing success.

To find out more about our holistic services and how we can assist you in particular, don’t hesitate to call us on 01926 757100 or send a query to Hello@harrisacquire.com and we’ll be in touch right away.

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