Q: I am thinking of buying a business. Why should I work with a Business Broker instead of facilitating the search and purchase process on my own?
A: Buying a business is an important decision. You need someone who is properly trained and experienced in the complexities of buying a business so that you get through the process comfortably and efficiently. Business Brokers facilitate the buying and selling of businesses. The Broker will educate you, negotiate terms and act as a safeguard against all the emotions that come along with these types of transactions.
The Broker will manage each step of the process (finding a business, pricing the business, negotiations, documentation, due diligence, securing financing, etc.) by confidentially coordinating the players including your attorney, your CPA and, most importantly, the Seller.
The Broker will have already qualified the business for sale based on your criterion, which will save you time. The Broker will have already worked with the Seller in gathering the necessary financial and company information. The Broker will do his or her best to prepare the Seller psychologically and logistically. The Seller pays for a Broker’s services, so, a Broker can structure a transaction that it is in the best interests of all parties.
Q. Should I use a Business Broker if I don’t know what type of business I want to buy?
Yes. Your Broker has the ability to match your criterion with available businesses for sale. You will want to purchase a business that interests you, arguably the most important step. Your Broker will assess your interests, past experiences, background, etc. and then present a variety of businesses to you. You should also consider location, the amount of cash you are willing to commit upfront, and the cash required once you own the business.
For more information, or to learn about next steps, visit our Business Brokerage Buyer tour online.
