Finding the right business, in the right place at the right time is not an easy task. It takes energy, perseverance and determination.

In the right circumstances it may also take more than a small slice of luck and professional assistance.

Professional business brokers exist to make sure that businesses are bought and sold.

They have access to a far wider range of businesses for sale than the average guy or gal in the street would have and often are able to show you the one business that you know is going to be just right for you.

But beware; as they only earn their income from a successful sale, just like estate agents, there have been known to exist the odd unscrupulous one!

So how do you know a good one from a bad one?

Well here are the top seven tips I give my clients for sorting the wheat from the chaff.

1.  Get Personal Referrals Where Possible: One method that will never let you down is to get a referral or recommendation from a trusted source. Your accountant, lawyer or attorney, friends, business associates and an industry association if you have one are all good sources for a referral or recommendation.

2.  Practice Your Own Due Diligence: Do not take any one’s word for anything. Check out your prospective broker with a fine tooth comb. Look at his qualifications, his experience and background in your industry. Look to see if there are any lawsuits or complaints pending or proven against them? Use the internet for a through search of their name and company details. Check their references, are there many happy clients happy to confirm their professionalism.

3.  Look For A Specialist: You want a full time professional business broker not a part-timer looking after your best interests. The specialist professional business broker will likely have a  larger network of contacts to call on and be more up to date with industry happenings.

4.  Avoid Pressure Brokers: Never allow yourself to be placed under undue pressure to make an important decision. If you do not feel comfortable with the manner of your prospective broker then they are not right for you.

5.  Make Sure That You Know Up Front If There Are To Be Any Charges. Professional business brokers normally earn their commissions from the seller on successful completion of a sale. Be wary of any brokers trying to charge you the buyer as well.

6. Do Shop Around First. It pays to take a look at more than one prospective broker, talk to at least three is my advice. You are looking to see if you feel confident that they are going to help you find your dream business. Are they bright and positive, do they appear to know what they are talking about when it comes to your industry or niche? And what’s to stop you using more than one professional business broker to help you? Nothing!

7.  Trust Your Instincts. Do not be afraid to go with your gut feeling, as long as you have taken all the above precautions first! If you have any nagging doubts as to your prospective broker’s integrity or ability to look after your best interests as opposed to force through a sale then back off!

You do not by any means have to use a professional business broker. If you feel that the benefits they bring to the table are worth having, then go ahead and use one.

Bear in mind that as the buyer their services should come without any charge. But also be aware that that means they are being paid by the seller!

This article was written by Brian K Fitzgibbon CPA.

Brian is an experienced accountant and small business consultant. He runs his own business, lectures extensively on small business topics and has checked out and valued many hundreds of small businesses for buyers.

Brian is also the author of the highly acclaimed and invaluable
"How To Value A Business And Buy It Without Fear"
A do-it-yourself guide for first-time and experienced buyers alike.

To download a FREE Chapter from Brian's book please follow this link: "HowToValueBusiness.com"

June 1st, 2009 | Tags: business tips, buy a business, find the right broker, professional business brokers, small business advice, value a business | Category: articles | Subscribe to comments | Leave a comment | Trackback URL  |