5 Advantages of using a Buyer’s Broker when buying a business.
1) Expert Guidance at no cost.
A buyer’s broker can offer a business buyer advice backed by long years of experience for FREE! In Florida the typical business for sale listing states that the seller is responsible for the paying the commission upon the sale. So the buyer is paying the fee along with the purchase price of the business regardless, therefore they might as well opt for the free personalized assistance and counseling.
2) Up to date sales comparisons and comparables.
In Florida most major business brokers belong to a business broker multiple listing system. They belong to other business broker associations as well. If a seller claims their business is worth a certain amount, past sale comparisons is one of the biggest weapons a business buyer could have. Business brokers have access to all kind of this information and in many cases can be used to help buyers obtain a more reasonable price more in line with the going rate that other buyers pay when purchasing a business.
3) Better price negotiation.
In addition to bringing sales comparisons and comparables to the table, using a business brokers to help negotiate the deal brings the business buyer a huge advantage. For one thing, the business broker can be used to pick up the slack and help keep the transaction moving. If a seller is busy or feels that certain information is unimportant, the buyer can ask the business broker to continue to pursue the information until it is received. After all, one of the goals of the buyer is to maintain good relations with the seller, but they cannot do that if they are seen as an aggressor that continuously hassles the seller. Using a buyer’s broker also keeps the deal very professional.
Sellers, landlords, accountants, and lawyers will definitely know that a buyer is more serious about the deal if they hire their own agent to help them. They will be much more motivated to help put information together for a buyer knowing that a broker will continue to pursue the information on the buyer’s behalf. One of the biggest things we encounter as business brokers at Crowne Atlantic is many times we will visit Sellers looking to sell and they freely admit they overpaid for the business when they purchased it and almost always they were not working with a buyer’s broker. Had they been working with a buyer’s broker it’s likely that they would have focused more on all the most important elements leaving their broker to help with the minor elements and they could have obtained a better deal.
4) Access to an expert network.
This is especially important for business buyers who are relocating from outside of the area or those that have never bought a business before. Business brokers in the area will typically have access to some of the best experts to assist buyers that purchase businesses. They know who the best and most inexpensive attorneys, accountants, builders, contractors, repair techs, suppliers, venders, and liquidators in the area. In many cases we recommend local professionals for jobs all the time, especially when we’ve seen them help our clients in the past.
5) Search and examine more businesses at a quicker pace.
If you’re a buyer looking for a business in Florida, one of the biggest advantages the business broker system has in Florida is that there is a multiple listing system set up in Florida that allows business brokers access to thousands of businesses for sale across the state. A buyer’s broker can help buyers narrow down options and focus on businesses that would suit them the best. Buyer’s brokers can show their listings and other brokers’ listings with a few clicks on the computer. At Crowne Atlantic Brokers we can pinpoint exactly what buyers want based on some of the key qualifications. Many of these buyers would have to wait weeks to receive the information that business brokers could obtain for them within an hour or two.