Using a broker increases your odds of success in finding a business to buy, closing on it, and operating it successfully after the closing.
Brokers have businesses to sell, some which might meet your needs. That is only the beginning. You have many steps between identifying the business and operating it successfully
You want to start the process by looking at businesses owned by a motivated seller. Surveys conducted by the International Business Brokers Association show that the biggest reason that deals fall apart is that sellers change their minds before closing. Brokers should have qualified the sellers for motivation. Qualified sellers increase the odds that you will be able to close the deal. Committed sellers usually use brokers to sell their businesses.
In addition, knowledgeable brokers will have asked enough questions and examined the financial statements to believe that they are bringing good businesses for you to examine. Brokers do not want to waste time on a losing business. They have performed the initial screening for you. You can focus initially on the match of the business to your needs and to what you need to do to be a success in the business. If you understand the business you are buying, you increase your odds for success.
As a buyer, you will want to know that most brokers represent the seller in a transaction. The seller typically pays the broker’s fee, which means no direct fee to you. The best way a broker can represent the seller is to is to present you with a business that satisfies your needs. The broker can help you navigate the many hurtles so you can buy the business and concentrate on making it a success.
Nicholson & Associates has guided the purchase and sale of many businesses over the years and understands buyers’ needs, fears and concerns. Our object is to satisfy your needs. You then can take the keys to your new business and pursue your dreams.
For more information on the buying process, see “The Buying Process”.