Here are fool-proof tips to help you find a business broker when buying a business.

Use Referrals, Recommendations, or Newspaper Ads

Like other purchases and hires, referrals play a pivotal role in your choice. If you are looking to find a business broker you can trust to help you purchase a business, ask a trusted business associate or friend for a referral.

You may not have confidence in your transaction if you do not trust your broker. Ask your lawyer, accountant, colleagues, or even your industry association for leads to proven business brokers. The business section of the newspapers often has reliable leads as well.

Look at the Brokers’ Professional Memberships and Certifications

The International Business Broker's Association (IBBA) is a global community of brokers. IBBA is an umbrella of over 1,000 business brokers spread across the world.

If your potential broker is a member of the IBBA, it's a sign of a reliable and reputable professional. You can even narrow down screening to the Certified Business Intermediaries (CBI). Members of this professional body are reputable for upholding high standards when dealing with their clients.

Analyze Your Potential Broker

If you want to find the right business broker, you should be willing to do your due diligence on the broker before you hire them. Investigate their background, business brokerage experience, and professional credentials.

Check if the broker has any complaints or lawsuits against them. Go to the Better Business Bureau and examine their references as well. Find out if the broker has helped similar clients buy their businesses before and what their experience is in their sector. This way, you can be confident they will be helpful in your business purchase experience.

Look For a Dedicated Business Broker

You can always expect a full-time business broker to add more value to your pursuit and purchase of a business than a part-time broker. Dedicated brokers often have numerous valuable contacts and better understand business valuation.

If you want to buy a business worth millions, you might want to look for a broker specializing in mergers and acquisitions. IBBA's ethics code will also come in handy as a valuable reference tool when doing your search.

When using the tool, focus on full-time brokers with considerable experience and recent achievements. Go for a business broker with more positive client testimonials and fewer complaints and lawsuits.

Avoid Business Broker Pressure

Do not make any rushed decisions. The purchase of your business is a huge step that involves complex transactions. Be patient and take your time to understand the business you are considering.

Remember that the business brokers have a fiduciary obligation to you and must be prudent when handling the transaction and your financial decisions. Avoid business brokers who are putting profits ahead of your investment soundness.

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