10 Questions You Should Ask Your Business Broker

Transcript

Andy and Jessica are bringing to you the 10 questions you want to ask your business broker. Listen to today’s episode to find the reasons why you should work with a business broker and how you can benefit from this decision. Selling a business is a complicated task and the experience of a business broker can make a substantial difference in a deal. Selling your business might be the biggest transaction of your life, you need expert advice and guidance to assure a successful deal.

Listings of the week: Justin Lefebure (Central Florida). Transmission/Mechanic shop for sale. Seller is retiring and is ready to finance. The owner is asking for a $100,000 down payment, he delivers a $750,000 building, $100,000 worth of assets, and a $500,000 worth of business. Financed for 15 to 20 years. Call Justin at (772) 925-2675 or email [email protected].

Key Takeaways

[1:10] What is business brokerage?

[3:46] Business brokers are really for middle to small size businesses.

[4:50] Selling a business is a complicated process.

[7:46] You hire a business broker for his or her experience.

[10:15] Some valuations require specific methodologies.

[11:48] How do you hire a business broker?

[13:05] Ten questions that you have to ask your business broker before you list them with Micheal Shea.

[13:32] Question #1: How many deals have you done in your career?

[14:24] Question #2: How often do you co-broker?

[16:10] Question #3: How much money are you spending on marketing?

[16:52] Question #4: Do you have a specialty?

[18:12] Question #5: How big is your firm?

[19:26] Question #6: Can you show me the competition for my business?

[20:32] Question #7: Will I have to hold paper or seller financing?

[21:28] Question #8: How long on average does it take to sell?

[22:39] Question #9: Which websites are you on and how do you market my business?

[24:07] Question #10: What is your commission?

[26:59] Deal of the week: Raymond Copell sold an insurance business. A deal that began years ago, and sold for three times the book value.

[30:48] Listing of the week: Justin Lefebure (Central Florida). Transmission/Mechanic shop for sale. Seller is retiring and is ready to finance. The owner is asking for a $100,000 down payment, he delivers a $750,000 building, $100,000 worth of assets, and a $500,000 worth of business. Financed for 15 to 20 years.

[33:56] Deal of the week: Peter Berg. A logistics company that was sold in the middle of the pandemic. Price: $600,000. Sold: $580,000. Seller note: $100,000 for one year. Paid the entire sum in one year. Online closing.

Mentioned in this Episode:

The Deal Board Podcast

United Franchise Group

Transworld Business Advisors

Transworld on Linkedin

Transworld on Facebook

Call us — (888) 711-9018

Email us [email protected]

Call Michael Shea (321) 287-0349

Michael Shea YouTube Channel

Email Ray Copell at [email protected] or call (954) 464- 6290

Call Justin Lefebure at (772) 925-2675 or email [email protected].

Call Peter Berg (954) 907-3007 or email [email protected]

Mentioned in This Episode

• The Deal Board Podcast
• Transworld Business Advisors
• Transworld on LinkedIn
• Transworld on Facebook