Hiring a business broker is usually a wise decision when processing the sale of your business or acquiring additional assets. However, there is a large variety of business brokers in Australia. Some are highly respectable firms, while others have less ethical practices. Ideally, you should want a business broker with integrity, a network of contacts, and experience in the industry. To help you find the ideal broker, here are some traits you should look for in how they conduct business.

Practical experience

In the business world, practical experience is sometimes valued just as much as an academic qualification. When you find an individual with both the qualifications and practical experience, you’ve hit the jackpot! The same goes for hiring a business broker. 

Ideally, you should try to find a broker who has been in the brokerage industry for a while. The benefit of this is that they have most likely made mistakes and learned from them, offering them a deeper understanding of how the industry works and what methods they can or should use to sell a business. Likewise, those who have been in the game for a while generally are well-known for either being good or bad brokers, so, you should have access to more reviews when doing your research. 

Past business ownership

Hiring a business broker who currently has or had their own business is extremely valuable. While this isn’t necessarily a must, it certainly gives them a leg up on other brokers. Hiring a business broker with experience as a business owner means that they are in a better position to grasp the operations of your business faster like how you operate sales and do marketing. While they don’t have to be experts in your industry, them simply having some business management experience will help them process your sale better. 

How well they facilitate conversation

Great business brokers are great at facilitating conversations with people. During the sale of a business, a good broker will usually facilitate all the communications between potential buyers, lawyers, accountants, landlords, and anyone else who might be involved in the sale in some way or another. They know how to work with people and negotiate to get you a favourable result when selling your business. Finding a broker who communicates efficiently with others and manages teams well is essential. 

A commitment to continuous learning

Those who believe that they no longer have anything to learn can come across as a little arrogant. Continuous learning has been a trait identified by some of the most successful people in the world, and for good reason. Ideally, you should try to find a business broker who adapts this quality and continuously tries to learn. 

This could be in regards to additional formal education, enabling them to expand their knowledge in the industry to provide a better service or in other capacities, too. The principle behind this trait is that the broker you’re working with is consistently trying to better themselves and the service they provide. It shows that when they deal with your business, they will apply the same principles. 

Trustworthiness

Trustworthy brokers are keepers. When you hire a business broker, they would likely have access to a good deal of sensitive information regarding your business. For example, if you’re planning on entering a new market or merging with another business, an information leak about your plans could ruin them for you and all the others who would benefit from it. Because of this, you need to find a broker who is trustworthy and who sticks to strict confidentiality practices. 

A good capacity to handle your business needs

Another consideration when looking for a broker is whether or not they have the resources and capacity to offer your sale the attention it needs. Business sales sometimes require an individual who can patiently sift through large amounts of financial information during the due diligence. If they miss something and you make a purchase based on their intel, you could get yourself into a difficult situation. So, before you hire a broker, ask them about the resources and how many other clients they are currently dealing with. This should give you a good idea of whether they can manage your transaction. 

Good ethics

Finally, hire a broker with good ethics and a sense of true north. Good brokers are comfortable with breaking bad news if it saves their clients money. Likewise, they should know the law and what’s expected of them and you legally. There shouldn’t be an inclination to cut corners or rush. Everything should be done by the book to protect your interests and theirs. 

Find a business broker in Melbourne

When it comes to sales, mergers, and acquisitions, having a business broker in your corner is helpful. Lloyd’s is one of Australia's best business brokerages, so they would be a great fit. They’re well-equipped to handle your transaction while maintaining confidentiality and professionalism, so if you’re looking for a business broker in Melbourne, Lloyd’s is the one to trust. 

Final thoughts

Nobody is perfect, but a few traits and practices set some business brokers above the rest. This includes a high commitment to professionalism and ethical practices, a good handle on the industry, and, obviously, results! Consider the traits above; they should help you find the ideal business broker.

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