On paper, buying a business may seem fairly straightforward. Someone is selling their business, you’re in the market to buy, so you contact them and the two of you work out the details. However, in reality, it usually makes more sense to bring in a broker in order to help you purchase a business.
For one thing, most brokers won’t dirty their hands by being a part of selling a business that is overpriced or otherwise subpar. When a broker is involved, then, you can usually rest assured that the company you want to purchase is on the level. While this may be your first time buying a business, brokers depend on these transactions for their livelihood and don’t want to see their reputation tarnished.
Along the same lines, brokers are expert negotiators. They want to see both sides walk away happy. This is where brokers really earn their keep. Throughout the negotiations, they’llmake sure both you and the seller stay on task, ensuring a quick, smooth process.
Now, let’s say you simply want to buy a business, but you haven’t located the right one yet. You may never actually find it if you don’t contact a broker first. For one thing, they’re probably simply more “in the know” than you are. Again, their livelihood is to be aware of who is in the market. However, you may also never know because many sellers wish to remain anonymous. They use brokers because if they tell everyone they want to sell, this could negatively affect their business in the meantime.
A broker can also be your best friend by helping you understand what kind of business would be best for you to buy. They’ll start by learning about your interests, skills, backgrounds and aspirations. Oftentimes, people who thought they were buying the right business to suit their personality had no idea that one in a completely different industry would actually be a much better fit.
Lastly, as brokers do this all the time, the paperwork involved won’t read like Greek to them. Not only will they understand all the latest laws, they’ll also be more adept at cutting through red tape, keeping bureaucratic costs to a minimum and helping you become a business owner as soon as possible.
Although it may seem like you’re just involving one more moving part, a broker is really worth it when you want to buy a business. Taking on the process by yourself will mean it takes longer, costs more and potentially ends up poorly.