Selecting a Broker
a business or individual is planning to acquire or dispose of a
multimillion dollar piece of equipment, the careful selection of a
qualified broker is critically important. The large number of details,
the money at stake and the timing objective requires professional
The following editorial will address the basic issues of brokerage selection and provide you with a guideline for success.
First, do your homework.
Before you meet with the very first broker representative, perform
preliminary detailed research on the brokerage firms that handle the
type of transaction you need.
Bigger isn't necessarily better.
A brokerage firm with a huge advertising budget, employee population
and facility would seemingly offer more resources, but often the firm's
size limits its capacity to focus on any one project. On the other
hand, a broker that is too small and lacks experience will not be
physically or financially qualified to manage all aspects of a large
transaction. Do not use one of your own employees; it will cost you in
a multitude of ways.
Your ideal brokerage firm will have plenty of experience in large
multimillion dollar transactions, but will also be sized to provide you
with excellent personal service.
When you meet your representative, note the questions asked.
Are they intelligent questions? What is the likelihood that this sales
person will focus on your objectives? Also, notice the presentation
materials. If the salesperson claims his or her company has extensive
experience in your type of equipment, does the person show you
verification? Also, what industry affiliations do they have? Ask the
salesperson about the marketing/search strategy. A good brokerage firm
will always have a well-rehearsed strategic plan of attack, and will
always have strong networking relations with other brokers.
In summary, look for experience, professionalism, marketing creativity,
eagerness, reliability, trustworthiness and communication skills. If
you find all of these things, sign an exclusive and then let the firm
get underway with its plan. The broker should now be allowed to use
his/her expertise freely.
You have done your job well ... They will now do theirs.