Additional information on each question from 50 Questions to Ask a Business Broker When Selling a Business
Q2. How long have you been a business broker?
Why should you ask this?
A broker’s years of experience can show their ability to navigate challenging situations. The length of time a broker has been in the industry gives you some insight into their experience, ability to adapt to market changes, and the knowledge to help navigate complex business transactions.
An experienced broker is more likely to have encountered a wide range of situations (e.g., deals that have fallen through, tough negotiations, economic downturns, and other unexpected wrenches that might get thrown into the process) and developed strategies to handle them. (Ask them about some past experiences to get a better handle on what they have dealt with prior.)
Individuals who have many years of experience usually possess a deeper understanding of a specific industry, the proper structuring of a deal, industry buyer behaviors, and the efficient management of the entire sales process. Newer brokers may still be effective and do a terrific job for you, but they don’t have the hard experience, and in my personal opinion, a new broker can do a fantastic job if they are a real go getter, plus they are willing to be adaptable and pivot quickly if a problem or issue comes up but you need to vet them even more.
