An easy question to answer…..absolutely not!

In fact, my gut feel is that the majority of professionals do not utilise a broker when it comes to selling their firms.  Why?

Probably for a couple of reasons; one being the associated cost, and two being the perceived lack of professionalism, service and reputation. Many brokers are tarred with the same brush as used car salesmen and real estate agents. For some brokers, that may be a fair comparison. However, for others, they have the real ability to add value to the process for any vendor. But, their service should be more than simply acting as an introduction agency, and it goes without saying that they should always have your best interests at heart.

Let’s take a moment to review how a practice broker should be able to assist you in the sale of your practice:

1. Initially, a broker should be able to provide advice around current market conditions, evaluate the options available to your particular circumstances and make a recommended course of action moving forward which should be more than simply recommending that you sell the business here and now. They can assist with your initial decision. If the only option provided by the broker is to sell sell sell now, then they may not be the broker for you.

2. They can provide a template to assist with the collation of data in anticipation of preparing the Information Memorandum. Advice and proposed amendments can also be of assistance here.

3. The broker can provide an indicative sale price based on the collated information about the practice. Whilst the vendor may have an opinion around what they want for the practice, it is worthwhile listening to the price guide provided by the broker if you are genuine about achieving a sale.

4. They should prepare and manage the promotion and marketing of the listing.

5. Upon receipt of enquiries, the dispatch of a legally prepared confidentiality agreement is essential. Again, this is performed by the broker.

6. As enquiries build, the broker works through the list of prospective purchasers weeding out the pack to arrive at a handful of genuine, ready, qualified buyers.

7. The next step is to facilitate the meetings between the vendor and a short list of prospective purchasers.