Finding a
certified business broker who can serve your specific needs isn’t always a walk in the park. Fortunately, however, there are many valuable resources at your disposal. Starting with personal references from friends and business associates, you may be able to get some quality leads to the right firms or individuals. (You’ll also be warned away from the bad ones).
But while word of mouth references are often a good indicator of what you can expect from an experience working with a particular vested business broker, this is only one piece of the puzzle.
Within the profession of business brokering, there are a variety of standards for becoming certified. Certification is not very uniform, and the meaning of certain standards may not be immediately apparent to the newcomer. Depending on what kind of transactions your certified business broker conducts, his or her area of expertise could differ greatly from the next broker.
That’s because different certifications are, for example, required for different types of
business for sale transactions. It is therefore possible that your broker is certified—but possibly not for transactions in certain states, or those involving certain sums of money.
Find out which type of certification your business broker has earned and contact the issuing agency to determine exactly what the certification means. Certification is to different degrees and is often issued from different levels of government. Additionally, some certifications carry requirements relating to professional conduct that are similar to those found within the medical and legal communities.
These certifications carry responsibilities that significantly reduce the likelihood of dirty dealing—as peer and government regulation can be powerful motivators for good business. Other certifications are merely related to competency—meaning that your broker has passed certain exams. Further confusing the issue is the fact that many brokerages will as a whole be certified, while their employees are given representative status—a type of certification that speaks very little to the individual.
Certification is no guarantee of a clean, profitable deal, but it does give you some added security. So take the time to find out what, if any kind of certification your individual broker has, and don’t forget to be vigilant. Ask questions, and if you smell a rat, ask more questions. A certified business broker can be a highly valuable asset. Make sure the professional is up to par with your business needs.
Peter Siegel, MBA is the founder and President of BizBen.com - Businesses For Sale In California. A nationally recognized author (3 books and a syndicated small business blog) and expert consultant (national SBA small business specialist) on selling and buying businesses, he provides professional assistance to business brokers, agents, and business owners in getting maximum response in their advertising & marketing efforts in regards to selling small to mid-sized businesses. If you are selling a business and need professional assistance utilizing high performance advertising, marketing, and highly effective strategies, or individual customization with your BizBen Power Search options in buying a California business, you can reach him at 866-270-6278.
Posted on June 3, 2008 | 
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