(this is not satirical, but is a tongue in cheek reply to ^Jeff Snell’s post here: https://www.searchfunder.com/article/viewarticle/48244)
This may come across as a bit of a rant but as a qualified business buyer, over the past year or so there’s been a significant increase in unprofessional behavior from business brokers. This in and of itself is frustrating, but there’s one other thing I’ve noticed and it needs to stop.
That is brokers failing to provide accurate and complete information about the businesses they’re selling. This results in buyer fatigue for two reasons: 1) We’re forced to chase down basic details that should have been readily available, and 2) to be blunt, it’s a colossal waste of time.
To mitigate this, I’ve started setting clear expectations upfront about the information I need before proceeding. That helped, but…
I just ended a call with a broker who couldn’t provide up-to-date financial statements for a business they listed (or wouldn’t before I submitted an LOI or APA). When pressed, they admitted they hadn’t even reviewed the latest numbers themselves. Whenever I encounter a broker who doesn’t know the essential details of their own listing, they’re essentially dead to me. If they can’t answer fundamental questions, I have to question their competence and commitment.
Business buyers do not work for brokers. We invest dozens of hours per potential deal reviewing and analyzing relevant information. Dozens more conducting due diligence. Unprepared and inattentive brokers waste an incredible amount of our time by not doing their part.
Don’t expect the buyer to compensate for your lack of effort.
Do your homework.
103 views
8 comments
Sign in to see all replies.
Create an account.