Hiring a broker is one of the smartest choices you could make in your efforts to sell your business. By choosing a broker who specializes in your field (like Tenney Group, who specialize in the buying and selling of transportation businesses), you acquire the skill and know-how of a specialized expert in addition to general knowledge of the brokerage business. But not all business brokers are equally qualified. Using the transportation industry as an example, below you will find the top three characteristics of qualified specialty business brokers:
1. They have experience.
As with almost all other careers, experience is an extremely valuable trait in the transportation brokerage industry. Some professional transportation brokers, for instance, have had formal training like classes or instructional seminars. This formal training can come in many different forms, including traditional classroom training, forums, or even online classes. Having an education of this sort helps specialty brokers to better understand the details of their industry and educates them on negotiation tactics, marketing theories, legal considerations, and other vital aspects of the brokerage business.
Other brokers have little or no formal training but instead possess real world experience. This type of transportation broker learned about how best to operate in the field by receiving on the job training and immersing himself or herself in real world business sales. Many current transportation brokers, for example, began their careers in the lower levels of the transportation industries. These individuals worked their way up from positions as truck drivers and other basic jobs to start a career as a transportation broker, so they possess the practical knowledge required to be a broker in their field. When deciding on a transportation broker, it’s up to you to determine how much experience is enough. Some individuals prefer traditional educational credentials, while others place more emphasis on real world experience. Most brokers possess some combination of the two.
2. They are licensed.
An official license is required to become a transportation business broker. Understand that, although there are exceptions, such as brokers who work under the umbrella and financial protection of a large firm, all other independently employed transportation brokers must obtain a license. To become licensed and bonded, a transportation broker must be given the permission of the Federal Motor Carrier Safety Administration (FMCSA) to operate his or her business. The approval of the FMCSA, which is a division of the United States Department of Transportation, indicates that your broker has performed the legal steps necessary to provide their services successfully.
3. They are bonded and insured.
Insurance is very important to look for in a qualified transportation broker. Brokers are required to file for insurance or a surety bond of at least $10,000 dollars, and this insurance bond is not only required by law, but is also extremely important to you as a client. Should the principal (the party responsible for performing the service- the other party) fail to follow through with its contractual obligations, an insurance policy or surety bond guarantees that your broker is still able to provide you with payment. If your broker is not properly bonded, you could be setting yourself up for disaster.
A qualified specialty business broker is a valuable asset in your efforts to buy or sell a business. The professional transportation brokers at Tenney Group possess all of the above qualifications and more. Not only are they fully licensed and bonded, as all good brokers should be, but they also possess a great deal of formal and real world experience. With Tenney Group’s impressive sales record, you can rest assured that every step of the purchase or sale of your transportation business will run smoothly.