5 Reasons You Should Hire a Business Broker when Buying a Business

5 Reasons You Should Hire a Business Broker when Buying a Business

How a Business Broker Can Help You Buy a Business

Buying a business can be a financially rewarding opportunity—if you know what to look for and how to negotiate a fair price. Unfortunately, not many potential business buyers do.

If you’re planning to buy an existing business, hiring an experienced business broker can make all the difference. Business brokers do more than simply narrow down a buyer’s search: they can advise and guide you through the complicated transaction of buying a business.

In the same way that agents hired by sellers work in the seller’s interest, brokers hired by buyers work in the buyer’s interest.

Here are 5 reasons you should hire a business broker when buying a business:

Screen Businesses

Buying a business is different from buying anything else. Many sellers don’t want the word getting out to employees, customers and competitors that they are selling the business, which can make it difficult for potential buyers to find listings.

An experienced business broker familiar with the local market will work with you to find businesses for sale. They’ll also conduct the necessary research to determine whether the business is a good investment for you.

Secure Financing

Most buyers need some sort of financing when buying a business. Business brokers are experienced in working with all sorts of buyers and budgets. They will get to know your needs and your goals, and can help suggest the financing options that are right for you.

Structure an Offer

Once you’ve found a business you want to purchase, the next step is to structure an offer. It is important for you as the buyer to have an experienced business broker on your side to take care of the important paperwork.

Business brokers will negotiate the terms and draft a letter of intent on your behalf. The letter of intent outlines the purchased assets, the purchase price, the conditions precedent to closing, and more.

Guide Due Diligence

One of the most important steps in buying a business is the due diligence stage. Not only can this stage be time consuming for the buyer, it can also be stressful.

An experienced business broker can guide you to make sure that the information provided by the seller is accurate. Their expertise can also ensure that the due diligence process will be conducted within the time period negotiated.

Close the Deal

The final step of the business buying process is the closing. A business broker can help ensure you have everything you need to be prepared. They will go over the closing documents and can even help you with a “walk through” to ensure that all the equipment and inventory listed in the purchase agreement is still there.

Ready to buy a business? Having an experienced broker at your side can be extremely valuable when it comes to the complicated transaction of buying a business. Whether you’re a first time buyer or an experienced investor, our brokers can help secure the right business investment for you. We’re experienced in working with both domestic and international buyers.

Look at our portfolio of available businesses or contact us today to get started!