There are many options to consider when hiring a Business Broker or third party to represent you in a transaction, whether you are buying or selling a business. This applies whether you buy or sell a business in California or elsewhere in the United States.
To help you make the right decision, consider the following.
1. Trust and Ethics.
When selling your business in California, you want to feel assured that choosing the right business broker is one with a strong commitment to trust and ethics. This is so you know your business and its interests are fully protected. The most essential ingredient is getting an ethical and trusting commitment from your business broker or sales agent. It is critical and should be non-negotiable. Read more about what an ethical business broker means.
2. Real Estate License
Many states in the US require a Business Broker to hold a real estate license to represent a property owner in a sale and be paid for providing that service. In California, the California Department of Real Estate issues licenses for two types of persons: Brokers and Sales Agents. A Broker can either work for themselves or choose to hire Sales Agents to work under them.
If you are considering hiring a Broker or Sales Agent, ensure their license is current. This information can be verified on the California Department of Real Estate website. Click “Real Estate License Lookup,” and you can then search by the first and/or the last name of the Business Broker or Sales Agent to see if they hold a license.
3. Specialization
Does the business broker or sales agent you consider hiring have a specialty? It could be in residential sales, commercial real estate transactions, mortgages, business opportunities, or a combination of these. Due to the complexities of different markets, most Brokers or Sales Agents tend to specialize in one area only. Even within these broad specializations, there are additional specialties, such as transactions exceeding $5,000,000 (M&A transactions). There are also business brokers or sales agents who specialize in industry sectors.
Here are the industry specialties of Rogerson Business Services.
4. Experience
Has the Business Broker or Sales Agent owned and operated a small business? Small business ownership teaches a range of skills and requires a unique understanding of what’s involved in owning and operating a small business. When detailed negotiations occur between the business owner and a potential Buyer, all options must be thoroughly explored, carefully considered, and fully understood.
5. Accreditations
Does the Business Broker or Sales Agent have formal training or education to support their service?
There are various accreditations, including the Lifetime Certified Business Intermediary (LCBI) designation from the International Business Brokers Association and the Lifetime Certified Business Broker (LCBB) designation from the California Association of Business Brokers.
For more information, please don’t hesitate to contact Andrew Rogerson, a certified business broker serving California, to schedule a brief consultation. We’ll discuss your particular business and what’s important to you, and make a plan for the first few steps.