Business Brokers Trap When Buying a Business

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Business Brokers Trap When Buying a Business

Posted by BBA
15 November 2019
 

Don't waste your time visiting a broker until you have had a chance to peruse the Business Information and determine if its worth investing time and effort.

The Business Broker said "I must come to their office" - We say "Don't waste your time"

You have found a business of interest advertised on a website. There hasn’t been much information but it does have a broker’s contact details, a reference number and an enquiry section.

In many cases and rightly so, before a business broker will send you any information, they will request that you sign a Confidentiality Agreement or Non Disclosure Agreement and may request a copy of your licence.

After providing the relevant signature and licence a Broker should then forward to you further information on the business in the form of a Business Profile or Information Memorandum. This document should have enough information to enable you to assess whether you would like to proceed with investigating the business further or not.

If a broker states that you must come into their office then STOP. Why would you need to go to their office when they can just send you the information.

WHY – There are many reasons but most likely they have no information or such little information that it’s on a single sheet of paper or that there was no business for sale and they want to steer you towards another business or possibly the business is so dodgy that they don’t want to present anything in writing. Who really knows – maybe they are so friendly and helpful that they just want to meet you!

I would suggest you don’t waste your time and visit a broker until you have had a chance to peruse the Business Information and determine if the business is worth investing time and effort. Then meet and have their percolated coffee in a styrofoam cup.

Don’t waste your time looking for a business to buy – call Business Buyers Advocacy (BBA) to help.

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