When considering a business advisor to help you acquire a business, be sure to ask the following questions:
In California and many other states, a business broker must have a valid real estate license. If he is a broker, rather than an agent, that is even better.
Are you a CBI?
A Certified Business Intermediary, by the International Business Brokers Association, is the gold standard certification for business brokers. It ensures a substantial level of training, experience and professionalism in the field of business brokerage. The California Association of Business Brokers recently started a Certified Business Broker program that, while not as stringent or prestigious as the CBI, is a start.
Some business brokers have more skills and experience than others. Is yours the owner and/or a real broker, or just an agent within the office? Has he owned or run his own businesses? What kinds of businesses has he actually sold? Does he have a college or professional degree, perhaps in business, law or technology? Is he a true business advisor, who can advise you in other aspects of your business?
An Independent business brokerage can offer service and innovation not offered by Franchised offices, which tend to use "cookie-cutter" approaches. While Franchises will tout their the "billions and billions" of business sales, these figures generally refer to the entire franchise network. In reality, individual Franchised offices tend to be small and act alone, but lack the service and creativity of some Independent offices.
Do you require an exclusive agreement?
Let us hope so. Most good business brokers will require an exclusive representation agreement, which means that you will not employ other business brokers during the term of that agreement. A good business broker will make a substantial investment in you, and expects a strong commitment from you in return.
Although chemistry and trust will no doubt play strong roles in your selection of a business broker, the questions above should provide a sound foundation for you to make your final decision.
This may be one of the biggest decisions of your life.