A major mistake when Buying a Business.

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A major mistake when Buying a Business.

Posted by BBA
23 August 2019
 

When buying a business through a business broker it may appear that the broker is your friend and will help you throughout the purchase. Keep in mind the broker works for the seller, not you the buyer.

When buying a business through a business broker it may appear that the broker is your friend and will help you throughout the purchase.

This is a normal reaction as the broker has provided you with information on the business and no doubt has been helpful in having any queries answered.

You may even feel that if you have a good relationship with the broker that you may get some special treatment and be looked after when it’s time to do a deal.

Well that’s not the case. The business broker works for the seller. In most cases they are on commission which means their income is greater when they sell the business at a greater price.

Nothing is wrong with that. It’s their job to get the best price for their client and a good broker will do that.

The broker does not work for you, the buyer and don’t kid yourself that they have your interest at heart. There are many businesses on the market for sale that are losing money or are not viable, but the broker won’t tell you that. Their job is to get a sale.

The irony is that if you are engaging with a business broker and they have gone over and above to assist you, it could mean that they have no other buyers or that finally they have a buyer for a business they cannot sell.

Take the risk out of buying a business and call Business Buyers Advocacy (BBA) to help you through the purchasing maze.

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