Be careful when considering working with any 'business broker' (company or individual) if you see any of these Red Flags:
A business broker won't give you client references!
Satisfied clients are willing to share their successful experience of a business brokerages services. Chose a business broker who is able and proud to offer a number of client references on request.
The broker has only been in business a short time!
Business brokerage does not require any special licensure in New Mexico, therefore, anyone can hang out a shingle and become a business broker or 'intermediary'. Chose a business broker with the most experience possible, more than several years is prefered. Anyone can buy some forms, or a 'system' however, years of experience successfully transacting business sales is what you want.
The business brokers model is built on making money from their upfront fee rather than from closing deals!
Paying an upfront fee for an evaluation won't sell your company - aggressive marketing will. Chose a business broker whose fees are based on successfully selling your business and is paid only at the successful closing of the sale.
Claims are made about contacting a few selected buyers who will pay a premium for your business!
Confidentially exhausting the market of multiple strategic and financial buyers is a far superior approach to getting you more money for your business. While having an extensive, confidential database of known qualified buyers developed over years in the field is helpful, chose a business broker who can describe how they will utilize creative, discreet and persistent marketing, in addition to having a buyers database, to get you the best deal the market has to offer.
Use of Sellers Discretionary Earnings (or Cash flow) (SDE or SDCF) in representing a business!
Sellers discretionary earnings (SDE) is a meaningless and misleading term. How much would you pay for SDE of $60,000/yr.? If the seller in this case worked 60 hours per week, how much do you want to pay for the privilege of earning $20/hr and having all the risk and headaches of running a business besides? We would suggest any prospective buyer walk away from that proposal at any price.
Be careful when you see a business represented using SDE that you don't buy yourself a job, or worse, an expensive hobby.
Business Brokers of Taos only uses True Cash Flow or True Business Profit when representing businesses for sale. This is a large part of what you are buying when you buy a business and what you need to know to calculate your expected return on investment. Ask us to help you understand True Cash Flow or True Business Profit and the significant difference using these terms means to your investment.
Reputable firms have nothing to hide - especially their record of success.
A business broker won't give you client references!
Satisfied clients are willing to share their successful experience of a business brokerages services. Chose a business broker who is able and proud to offer a number of client references on request.
The broker has only been in business a short time!
Business brokerage does not require any special licensure in New Mexico, therefore, anyone can hang out a shingle and become a business broker or 'intermediary'. Chose a business broker with the most experience possible, more than several years is prefered. Anyone can buy some forms, or a 'system' however, years of experience successfully transacting business sales is what you want.
The business brokers model is built on making money from their upfront fee rather than from closing deals!
Paying an upfront fee for an evaluation won't sell your company - aggressive marketing will. Chose a business broker whose fees are based on successfully selling your business and is paid only at the successful closing of the sale.
Claims are made about contacting a few selected buyers who will pay a premium for your business!
Confidentially exhausting the market of multiple strategic and financial buyers is a far superior approach to getting you more money for your business. While having an extensive, confidential database of known qualified buyers developed over years in the field is helpful, chose a business broker who can describe how they will utilize creative, discreet and persistent marketing, in addition to having a buyers database, to get you the best deal the market has to offer.
Use of Sellers Discretionary Earnings (or Cash flow) (SDE or SDCF) in representing a business!
Sellers discretionary earnings (SDE) is a meaningless and misleading term. How much would you pay for SDE of $60,000/yr.? If the seller in this case worked 60 hours per week, how much do you want to pay for the privilege of earning $20/hr and having all the risk and headaches of running a business besides? We would suggest any prospective buyer walk away from that proposal at any price.
Be careful when you see a business represented using SDE that you don't buy yourself a job, or worse, an expensive hobby.
Business Brokers of Taos only uses True Cash Flow or True Business Profit when representing businesses for sale. This is a large part of what you are buying when you buy a business and what you need to know to calculate your expected return on investment. Ask us to help you understand True Cash Flow or True Business Profit and the significant difference using these terms means to your investment.
Reputable firms have nothing to hide - especially their record of success.
