How to Recognize a Bad Business Broker

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1. The person “guarantees” you that he or she can sell your business for “whatever you want.” They tell you what you “want” to hear instead of  what you “need” to hear.

2. They tell you that they can sell your business “in a matter of days” instead of “in a matter of months.”

3. They have “no references” that you can contact. They have “no written testimonial letters.”

4. They have been “selling homes” to support themselves.

5. They do not believe that “tax returns” and “financial statements” are really that important.

6. They do not belong to a “credible business broker organization” and subscribe to a “Code of Professional Ethics.”

7. They have “less than 5 years experience.”  It is preferable that they have 15 to 20 years experience.

8. They “bad mouth” other business brokerage firms to get you as a client.

9. Their marketing material is substandard or lacking in professionalism.
 
Why You Should Use An Experienced Business Broker:

Business brokers act as intermediaries between buyers and sellers in the brokerage process. There are a number of reasons why you should use a business broker when looking to buy or sell a business. A business broker is a trained specialist in the field of business transfers, just as an attorney is trained in law and a CPA in accounting and taxes. These are issues that are far more complicated than a real estate transaction. And an intermediary’s experience and knowledge of the whole story of your company – finances, competition, your market – gives him (or her) objectivity to effectively offer your business for sale and know whether a deal will or will not work.

  • Author: Loren Schmerler
  • Title: Business Broker - Owner
  • Company: Bottom Line Management, Inc.
  • Company Website: http://www.botline.com/
  • Date: November 03, 2016
  • Category: Buying a Franchise or Business
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