1. "Do you specialize in a specific industry or type of business"?
- Yes. The type that makes money and is established. We believe that ALL businesses can be sold. As long as the Business Broker and the Business Owner are persistent, there is a Buyer who will find value in the business. The key to achieving success is to have rational expectations and exceptional tenacity.
2. "Then why are you so selective in your Listing process?"
- Irrespective of the size, type, location, sector, or history, the two main factors that determine our decision whether to list or turn down a business are: (a) "Quality of the Business", and more importantly, (b) the "Quality of the Business Owner".
3. "How long will it take you to sell my business"?
- No broker can make an accurate prediction. Some businesses take months before they sell, and others get an offer in a matter of days. Your best bet is to set a reasonable selling price and have good books and work with a licensed, full-time Business Broker to prepare it for sale. After the initial consultation, an experienced Business Broker should be able to point out the challenges and advantages to your specific situation and give you his/her opinion.
4. "Do you have a Buyer for my business"?
- Potentially. We communicate with dozens of people every week who are seeking to buy a business. Most of them are not serious, but a few of them are sincere and demonstrate it by providing us with their Financial statements and 'Buyer Criteria', and are added to our database that is refreshed frequently. If your business fits their needs we will try to match them with you. However, until they make you an offer, they are not Buyers for your specific business. For bigger businesses, the requisites are more defined.
5. "Do you co-operate with other Business Brokers"?
- Yes. Our mission is to sell your business at the highest fair market price in the shortest time, and the Broker's interest is secondary. However, we are prohibited by law to share commission with a Broker who is not licensed by TREC. Unfortunately, there are many individuals who evade accountability and try to sell businesses without the license required to properly protect and represent the Seller of the business.
6. "Do you charge any upfront commissions'?
- No. Be wary of Brokers who will inflate the price of your business and require you to pay an upfront fee based on the price of the business. Our commissions are based on 'success', i.e. if the business does not sell, you pay nothing. Occasionally, a business owner will negotiate a lower commission by offering to pay a percentage upfront; the higher the retainer, the lower the success fee. We do not charge any monthly service fees.
7. "Can you sell a portion of a business or my stock in a corporation that owns the business"?
- No. Selling company stock require specific federal and state licenses, without which any offering made by a broker is illegal. We sell the entire entity as an 'asset sale' or if the Buyer and Seller negotiate to consummate the transaction as a 'stock sale' we will register with the Texas SOS to participate in the transaction.
8. "What are your commission rates"?
- Depending on the size of the business our commissions range between 6% to 12% of the selling price of the business. Like everything else in life, commissions are negotiable, but your decision to pick a Business Broker should be independent of the 'commission' rate, as some brokers use that as the only means of listing a business.
9. "What kind of Listing Agreements do you offer"? Almost all our agreements are 'Exclusive Right to Sell' contracts. For businesses not matching our requirements for listing, we offer an inexpensive FSBO program. Occasionally, we will represent the Buyer to identify, locate and negotiate a sale of a business.
10. "Are you a member of IBBA"?
- In lieu of learning from a strong mentor, IBBA can be an excellent source of training for the novice. But like all membership organizations, it derives its revenues by annual membership dues by promoting the membership as a prerequisite for excellence. However, it's no substitute for real life experience that comes with time and the volume of business transactions.
11. Do you sell Real Property?
- Only if the property comes with the business. Sometimes, the property owner will sell the business and retain ownership of the property and continue to collect rent. Other times, the owner may wish to sell both. We do not sell Residential Property/Homes.
12. "What other factors should I consider in picking a Business Broker to maximize my probability of success"?
- Full time Business Broker specializing in business sales.
- Has a Real Estate licence (Broker) for full protection of the Buyer/Seller in a property/lease transaction.
- Local and available to meet you and the business Buyers face to face to facilitate and advance the transaction.
- Does not have a history of jumping in and out of the trade or switching companies frequently.
- Not a start-up brokerage franchise location that relies on telemarketing to stay in business.
- Contact us for further assistance