By Charlie Brown

In the current millennium, it is hard for the buyer of a business and the seller to connect. This is because they might both be busy with their lives. In business, middlemen exist to facilitate such transactions. When buying or selling a business, you can hire a middleman who will do most of the negotiations for you. In most cases, they charge a commission of 5-10% of the deal. Sometimes, they may even demand more. These middlemen are called business brokers. Business brokers have become so many in the market that it’s now a challenge choosing one to hire. Below are key factors you need to consider before you can hire any middleman:

1. Get referrals

Get people who have had experience with business brokers to help you out. These are the best people to get referrals from. They can be relatives or friends. To prevent you from having the same pitfalls they did, they will offer you advice on the best brokers. They are likely to refer you to people with a good reputation and who take good care of their clients.

2. Cost effectiveness

Hiring a business broker is more cost-effective because they have expertise in the field. They will thus save you unnecessary costs. It can be tiring and expensive travelling from one place to another just to market a business you want to sell. If you decided to use advertisement agencies, it would be more expensive. So, it is easier and cheaper to invest in one good broker who will do all the marketing for you. Negotiation processes can be expensive. However, brokers shorten this process by making sure both parties get what they want.

3. Experience and qualifications

Anybody planning on selling their business through a middleman knows that experience is one
attribute you can’t overlook. Experience is gathered by practicing what you do over time. Some skills learnt on the job may never be taught in class, according to theiet.org. If you hire an experienced middleman, then your deal is likely to go very well and end up with both parties happy. Experienced brokers will be able to handle any arising problems. Furthermore, when choosing a broker, you need to look at their qualifications. Don’t just trust anyone who claims to be a broker as they might disappoint you and run away with your money. Ensure that the person you pick has undergone the required training.

4. Personal skills

People differ in character and personality. Always insist on hiring someone with good attributes like honesty and diligence. This will be very essential, especially in marketing your business to prospective buyers. Also, look for someone who can hold a conversation with a prospective buyer or seller and keep them interested. Avoid rude people as they are a nightmare to work with. They might scare away all your prospective buyers instead of attracting them. Furthermore, choose somebody who keeps time. It will be very unfortunate if the broker you hire never shows up for meetings on time.

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