THE SHORT ANSWER
Choose an advisor by the fit between your business, the documented service and the engagement terms. Ask for evidence of relevant experience, a confidential marketing plan, buyer qualification methods and clear fees. Verify any claimed credentials independently. A title, membership or promised price does not establish a successful outcome for your sale.
Ask for relevant evidence, not a generic success rate
Ask about business types, operating complexity, owner roles and deal structures comparable to yours. Confidentiality may limit which names can be disclosed; request permitted references or anonymized examples whose details can be substantiated. Do not accept an invented testimonial or treat a broad closing percentage as meaningful without its denominator and period.
IBBA provides a directory with membership and designation filters. Those designations are different from governmental licensing or transaction-specific authority, and they do not guarantee a sale.
(IBBA: broker directory)If the engagement involves real estate, securities or specialized regulatory issues, ask counsel which registrations, licenses or exemptions are applicable.
Review the actual seller workflow
| Owner question | Evidence or explanation to request |
|---|---|
| Who reviews earnings? | Sample adjustment process and boundaries of the financial work |
| Who sees my identity? | NDA, qualification and approval stages |
| How are buyers approached? | Approved channel plan and disclosure controls |
| Who verifies funding? | Qualification process and supporting evidence |
| Who manages the file? | Named contact, communication cadence and handoffs |
| What happens after an offer? | Diligence tracker and coordination with your advisors |
Ask who performs the work, not only who attends the introductory meeting. Discuss which deliverables require your approval and how private information will be stored and released.
Read the engagement as a business decision
Compare success fee, minimum, retainer credit, expenses, exclusivity, termination, renewal and tail provisions. Ask whether the fee base includes notes, earnouts or real estate and when contingent amounts create payment obligations.
(BizBuySell: understanding business broker fees)Disclose buyers who have already approached you and agree how those contacts are treated. Ask how conflicts, co-brokering and any representation of the buyer are disclosed and managed. Have counsel review provisions that affect your ability to stop the process or work with another advisor.
A lower percentage may cover a narrower service or apply to a larger fee base. Compare scope and net cash using a common set of hypothetical terms.
Set expectations for the relationship
Agree what updates you will receive: inquiry quality, approved information releases, financial refreshes, open diligence items and next actions. Distinguish effort and deliverables from a promised price or closing date.
- What needs to be prepared before marketing?
- What would cause the advisor to recommend waiting?
- What information must your accountant or lawyer supply?
- How will offers be compared beyond headline price?
- How are your transition and confidentiality priorities documented?
For Jaken Equities, use a confidential conversation to discuss fit and scope, then evaluate the written engagement.
Owner questions
Should I select the advisor promising the highest price?
A high estimate is not evidence. Ask for the earnings basis, comparables, risks and explanation of what price includes.
Is a CBI designation a government license?
It is an IBBA professional designation. Applicable government requirements and transaction authority must be considered separately.
Can I interview brokers before committing?
Yes. Compare the same questions, evidence and written terms before choosing representation.
Sources and review scope
Source review completed . The sources below support the identified concepts or rules; they do not validate hypothetical amounts or a valuation of your business.
- IBBA: broker directory
Checking membership and CBI/MCBI designations; no Jaken credential is asserted.
- BizBuySell: understanding business broker fees
Contractual fee structures; not a Jaken fee quote or universal rate.
Confirm tax, legal, accounting and lending applications with the relevant professionals. Historical market observations describe the stated period and reported sample.
This is educational material. Industry figures and program rules can change; check the original sources and your advisors before applying them to a transaction. Calculator scenarios are not appraisals, lending decisions, or offers.
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