4 Tips to Find a Reputable Singapore Business Broker
If you are planning to sell your business because you have other plans or migrating to another country, getting a reputable business broker should be an option. If you’re in Asia, a Singapore business broker can help speed up the selling of your business to qualified buyers.
But before you can work with a broker, you need to know that your business is in good hands. You don’t have to choose a popular broker. There are certain criteria that you should look at before you start collaborating with them.
Check out these tips to find a reputable broker for your business:
Tip #1: Select a Broker with a Specialization in Your Industry
Not all brokers specialize in all types of businesses. You need to choose a broker who has experience and expertise in selling a business like yours. They should be able to sell the same type of business in the past years.
Ideally, choose a broker that has specialization in the same industry. For instance, if your business is retail, don’t choose a broker with manufacturing or farming sale specialization.
It’s a no-brainer. They were able to sell manufacturing or farming businesses because their contacts and prospects mostly belong to the industry. If you are going to work with them, there is a big chance that it will take time for you to sell your business or maybe not.
When inquiring, ask if they have experience in selling the same type of business in the past two or three years. Ask them for proof of sale.
You also need to consider if they have experience in selling businesses of your size. If yours is a corporation, and they only have experience in selling small businesses, there’s no guarantee that it will be successful.
Tip #2: Check Their Accreditation
Check if a broker is accredited under professional communities. Reputable brokers in Singapore should be a member of certain organizations in the Business Brokerage Industry. They must be a member of the International Business Broker Association (IBBA) and Mergers and Acquisitions Source (M&A Source).
Being a member of certain organizations assure that you are working with reliable brokers since it holds a high standard in the industry. You’ll have peace of mind that you’re working with trustworthy partners in the business.
A broker in Singapore should be accredited as a Certified Business Intermediary (CBI) under IBBA. To be qualified, a broker must complete 52 hours of the required course and 16 hours of electives, pass the examination, and must have proof that they have strong sales records (3 or more than 3 business sales).
To become a qualified member of M&A Source, a broker must be accredited as Mergers and Acquisitions Master Intermediary (M&AMI). To become an accredited member, brokers should be a lead seller broker on three transactions amounting to more than $1 million in sale price.
Tip #3: Know About Its Marketing Program
You need to know how brokers are going to sell your business. A good broker can show you a good marketing program that suits your business.
How are they going to promote the selling of your business? Are they using social media platforms, business sites, fliers, and other marketing ads?
Ask for their marketing strategy. A good broker is the one who knows what marketing technique to use to attract qualified buyers. They should be able to create good competition to get a better deal for your business.
Tip #4: Know Their Reputation
These days, it’s easier more than ever to know a business’ reputation. You can check their reputation online by visiting review sites or by simply “googling” the broker’s name.
Aside from that, you can ask them a list of their past clients. They surely have a copy of successful sale transactions. It should have names and contact numbers so you can verify it.
It should serve as your reference before doing any certain action. It’s very important that you know a broker’s reputation. You don’t want to become a victim of scrupulous brokers so you must be careful.
Choosing a reputable broker should take time. Don’t rush because you want to sell your business at once. It’s very important that you consider these tips before choosing a broker.