Although business brokers generally represent the seller, the buyer also reaps the benefits of expert guidance. A business broker provides vital services for both parties and acts as the “glue” for holding together the pieces of the business sale process. Here’s how a business broker will work with you the buyer.
Business brokers prefer to understand your needs and desires in buying a business. During a preliminary discussion, the broker will typically ask the prospective buyer questions such as these:
- What kind of business do you want and why?
- What tpye of business have you looked at so far?
- Do you have the necessary funds to buy a business?
- Is the cash readily available?
- What is your time-frame for buying a business?
- What are your expectations about the purchase of a business?
After this fact-finding meeting, the broker can then show the buyer businesses that are both feasible and that fit the buyer’s requirements. Further steps the broker will lead the buyer through are as follows:
- Since sellers are (rightly) concerned about confidentiality, the broker will ask the prospective buyer to sign a non-disclosure or confidentiality agreement.
- The broker will provide the prospective buyer with preliminary information about one or more businesses, including pertinent financial data.
- The broker will arrange for the buyer to see businesses of interest.
- Once the buyer has indicated strong interest in a particular business, the broker can then supply additional information and schedule further on-site appointments.
- When the buyer is ready, the business broker will be the best source for answering questions, addressing concerns, resolving loose ends, and offering a business broker’s unique expertise in the business sale transaction.