Selecting a Broker

When 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 management.

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.