Whether you are buying a business using a broker, or you are about to sell a business using a broker, here are some tips to keep in mind.

Buying a Business Using a Broker

One of the most frequent questions in the business world often revolves around buying a business using a broker.

Not unlike what you see in the home real estate sector, business brokers tend to be paid by sellers: something you need to keep in mind if you’re a buying a business using a broker. At the same time, an experienced broker can help you narrow your search to the kinds of businesses that meet your needs and search criteria.

Business brokers almost always represent the seller or the deal in a business transaction role. The seller pays their commission and even if they are assisting you in the process, they may in fact have a fiduciary duty to the seller. This is not to say that they won’t provide you with helpful advice.

Why then, you may ask, should you use a broker?

Is some sense, a business broker is similar to a real estate broker. And when it comes to paperwork on a home sale, wait until you see the paperwork on a business sale.

The Paperwork is Astounding

A business purchase, no matter how small, requires a tremendous amount of coordination and document chasing. From the hunt for data you’ll need from a seller to evaluate a business, the documentation required to close a deal and the overall chasing that must be done between buyer/seller and their professional advisers, can be astounding. A good broker will be an enormous help putting this all together for you. It’s what they do.

Business for Sale Listings

You can spend all your waking hours searching and registering online for business-for-sale databases, or you can utilize a broker. Business brokers can provide you with access to business-for-sale listings and details about the business that you would never discover on your own.

A Valued Buffer for Negotiations

A business broker can be a valuable conduit to help deliver bad news to the seller. When negotiating to purchase a business, there may be instances where you have to retract or modify an offer and certainly times where you’ll need to adopt a more aggressive negotiating position. Since you’ll likely need the seller to train you after the purchase, it’s not a good idea to aggravate them too severely. As such, let the business broker be the bearer of bad news.

Speaking of “after the sale”, a good broker can help.

After Sale Services

After the sale, a good broker can be of help. A great broker can be your best business asset. Need additional financing down the road for expansion? Want funding to purchase new equipment or increase inventory? Need a better web presence? Need assistance with commercial and government marketing? Elan Capital can help with all this and more.

Now, after the sale, having a relationship with the right broker can make all the difference in the world.

At Elan Capital, our professional business brokers use the same care in helping to match you to the appropriate business for sale as if we were buying it for ourselves. We can help you buy a business comfortably and efficiently with an experienced professional guiding you through every step.