• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Marketinia

Marketing Solutions for Moving Forward

  • Home
  • Topics
    • Business
    • Construction
    • Family
    • Fitness
    • Furniture
    • Health
    • Swimming Pool
  • Ask a Question
  • Contact Us

Making Sure You Hire the Best Business Broker Available

Last updated on October 11, 2010 by Sozo Staff 1 Comment

Do you own a limousine, trucking, bus, or ambulance business that you consider your most valuable asset? Are you considering selling that transportation company? If so, you may be considering utilizing the assistance of a business broker.

Many people make the mistake of hiring a general business broker that is local or even recommended by a friend. However, most general business brokers do not have the specific industry experience and calculations to properly value and list your transportation business. Before you hire a business broker ask them these four imperative questions.

“What is your previous experience with selling a business similar to mine?”

While many general business brokers do have talent and experience in a sales process, they often overestimate their ability to sell a business specific to an industry. Their lack of experience in the actual transportation industry may lead them to value your business incorrectly.

You want to pick a industry specific business broker that can use years of experience owning, buying, and selling transportation businesses to create an industry specific valuation formula. Sellers often list with a general business broker only to receive no offers. The business broker may eventually turn to a transportation business broker for assistance.

Ask questions and a lot of them. Find out how many transportation business sales they have successfully completed? Learn about any problems or complications that may have occurred and how they handled them. Rather than listing your business for a year or more, choose an industry specific broker that can get the deal done in three to nine months.

“Do you require a commitment or launch fee?”

It is a proven fact: sellers who list with industry specific brokers over non-industry specific get quicker results and possibly more money. Some business brokers do not require a commitment fee, which may in turn allow them to stockpile listings. However, they run into issues when sellers/buyers are not serious.

An industry specific broker may require a commitment fee to secure his services. First off, the broker will determine if the seller fits their specific requirements.

Is the seller properly motivated to sell? Does the seller understand all of the fees and willingly agrees to follow the broker’s plan?

If this seller fits this criteria, then they are able to pay a commitment fee to secure the broker’s time, talent, and wealth of experience.

“When you say you have buyers, are they qualified?”

Some business brokers may advertise that they have possible buyers lined up. However, are the buyers screened and qualified to purchase a business like yours?

Most business sales are hindered when a buyer suddenly backs out of the deal. If this does happen, how will the business broker produce more possible buyers?

Examine the broker’s lead system. Are they constantly generating new buyers? Do not get stuck listing your business for months or even over a year with the hopes of finding that one perfect buyer. Be sure to choose a broker that has qualified buyers lined up and is ready to produce more if that time comes.

“Are you continuing your education and professional training?”

You want to be sure that your business broker is up to date in all of the latest strategies, techniques, laws, and skills. If you are selling a transportation business, choose an industry specific broker that is a member of the IBBA (International Business Brokers Association) and the TABB (Texas Association of Business Brokers). A member of these associations will attend continued education and training seminars to ensure they are current with the industry’s needs.

If you are preparing to sell the most valuable asset you have ever owned, be sure to choose an industry specific business broker that has the experience and knowledge to quickly get you a sale. General business brokers may have experience in the sales process, but most likely lack industry specific knowledge that is crucial to ensure you get the best price for your business.

Filed Under: Business

Additional Articles

flexibility by young gymnastic girl
Nuts & Bolts of Priority Enrollment for Your Gymnastics Center
eager ambitious young ballet students
How to Recognize and Reduce Bullying in Your Dance Studio, Part 3
beautiful young ballerina girls resting against barre
How to Recognize and Reduce Bullying in Your Dance Studio, Part 2
beautiful young ballerina girl resting arms head on barre
How to Recognize and Reduce Bullying in Your Dance Studio, Part 1
Communicating with Parents: When Illness Hits Your Child Care Center
What Goals Can Jackrabbit Help Your Swim School Achieve?

Reader Interactions

Comments

  1. Gary Kane says

    October 18, 2010 at 7:28 pm

    Thank you. Great Post.

    I would add that a generalist business broker is a specialist in a community or metro area. An industry specialist would not have enough volume for deals to specialize in a community or metro area.

    Regards,
    Gary Kane
    chimera strategies
    developing relationships | brokering businesses

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

fifteen + six =



Primary Sidebar

Lyon Financial

Popular Articles

  • How to Keep Track of Your Flash Drive
  • Stretching: Can There Be Too Much of a Good Thing?
  • Benefits of Ambidexterity
  • Should I Use Genuine Mahogany or African Mahogany?
  • Marine Grade Plywood Uses and Facts
  • How Much Is Your Trucking Business Worth?
  • What’s All the Excitement over X10 Home Automation?
  • Product Review of NuCedar Materials
  • Heated Driveway Installation by D'Amico Electric of Westchester, NY
  • Mooresville, NC Septic Pumping & Cleaning
  • The Truth About Recovering from Shoulder Labral Repair Surgery
  • Encourage Healthy Choices by Adding a Pool to Your Backyard
X10 Home Automation

Recent Posts

  • Winterizing Your Swimming Pool, Part 2
  • Winterizing Your Swimming Pool, Part 1
  • Keeping Up with Swimming Pool Material Innovation, Part 2
  • Keeping Up with Swimming Pool Material Innovation, Part 1
  • Ipe Wood: An Unusual Lumber Species, Part 3
  • Ipe Wood: An Unusual Lumber Species, Part 2
  • Ipe Wood: An Unusual Lumber Species, Part 1
  • Benefits of a Swimming Pool for a Healthy Lifestyle
  • Maxtrix Bed Options for Kids Rooms
  • Long Island’s Favorite Full-Service Children’s Bedroom Furniture Store
Lyon Financial

Reader Feedback

  • Alice Carroll on Gymnastics Tips: Back to the Basics with 6 Beginner Moves
  • Alice Carroll on The Vinyl Liner Pool Owner’s Guide to Swimming Pool Repairs
  • Alice Carroll on Concrete Sealer: What You Need to Know, Part 2
  • Alice Carroll on Vinyl Liner Options for Your New Swimming Pool
  • Afton Jackson on Pros & Cons of Fiberglass Swimming Pool Liners
  • Alice Carroll on Concrete Sealer: What You Need to Know, Part 3

Copyright © 2023 Sozo Firm Inc · Privacy Policy · Disclaimer · Sitemap