Additional information on each question from 50 Questions to Ask a Business Broker When Selling a Business
Q1. Are You a Real Estate Agent?
Why should you ask this?
If you own the property where your business operates, it’s important to choose a broker who holds a real estate license. If you are selling the property or offering a long-term lease to the buyer, your broker must hold a real estate license to properly assist with these negotiations. If not, they’ll need to work with a third-party real estate agent, or they risk violating the law.
If a third-party agent is involved, make sure that they are also experienced in handling commercial real estate transactions for owner-occupied buildings. A broker with real estate knowledge can guide you on market conditions, lease terms (if leasing), and pricing, which are important in a business sale.
Avoid using a real estate agent who only occasionally handles business sales. Business brokerage and real estate sales require different skill sets.
A real estate agent who dabbles in business sales might attempt to sell your business and list the real estate separately, which could compromise confidentiality. It’s best practices to work with a broker who specializes in both the business AND the property to ensure a seamless and confidential process.
If you would like to check the current licensing status of a broker with a real estate license you can visit the Arello Database at https://www.arello.com/search/ (free).
