Buying a Business: 4 Questions to Ask Your Broker

Questions to ask your Business BrokerAfter you've settled on buying a franchise business, it can be hard settling on one. Business brokers have inside information regarding the industry and are aware of the businesses on offer. So they can help you by matching you with the right business. Below are some questions to ask before indulging them.

How do you assess suitability?

Business brokerage franchise firms have experience dealing with various entities. A good consultant will want to be certain that what they're offering you is a good fit. As an investor, you don't want to end up with a business you'll not commit to in the long run. There are different personality and suitability tests they can conduct to evaluate your interests. You can narrow down to what suits your needs from those that match your interests.

How many people have you helped buy a business?

By asking this, you'll gauge their experience and how much value you'll be getting from their services. Ask them to refer you to people they have helped, those who succeeded, and those who didn't. Talk to them to see what was right about the process and to also help you know what could go wrong in the deal.

What value will you add to the buying process?

When buying a business, there are a lot of things you can do on your own. If the only thing they're going to offer is a list of available businesses, you're better off browsing a directory. They need to bring in more than you can achieve on your own so that you can get a return on your investment. This includes resources you can’t access, consultation advice, and experience.

What’s the fee expectation?

Before securing their services, it's essential that you are clear on the charges. Ask how much you'll pay them and the commission they earn from the franchisor. Only settle for a price you can afford.

Opting to involve a broker when purchasing a business makes the process less complicated. However, to get it right, both of you have to express your expectations clearly.