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I am looking to buy a business. Do I need a broker or can I use the broker from the selling company?

I have been doing my own searches and inquiry about business that are for sale. I am getting a difficult time getting some of the broker to response or actually send me the information when I sign the confidentiality agreement. I am not sure if I should get a broker because I am open to buying a business is any area not just the city I live in.

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Answers (3)
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Signal Hill Holdings, LLC
General Partner
CT

I get this question a ton. First of all there are sell side brokers and buy side brokers. What you see mostly on these listing sites is sell side brokers. These sell side guys work for the seller and are the guys that can give you a hard time. There are effective ways to deal with them and ineffective ways. This is huge and I can give you more info on that. However your question appears to go in another direction which is whether you should hire a broker. Presumably a buy side broker.

Let me say that doing that can't hurt you if 1) there are no front fees and he is paid upon successful closing -- and might be a great idea if 2) you find one that is aggressive and can shag new deals for you that aren't being marketed.

It never is a bad idea to expand your reach through as many brokers as possible. But getting back to the lack of sell side broker response, this problem can largely be solved by making sure you approach is professional and tailored to the deal you are interested in. Once pitch fits all doesn't work here.

Rock
lbo-deals.com

Sep 15, 2015
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If you are interested to do business in Maldives, please contact me

mfirash@gmail.com

Jul 18, 2015
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The BAF Group LLC
MD

You do not NEED a Broker, in order to buy a business. But understand that the Broker that represents the Seller, which is called the Listing Broker, does not represent you! He/She only represents the interests of the Seller. You do not want to tell the Listing Broker anything that would give them a negotiation advantage. For example, you do not want to tell him/her that you are willing to go higher, or provide them with any insight about your negotiation strategy. I am sorry that you are having difficulty with some Brokers. Sometimes, having a Broker on your side can help. On the other hand, Real Estate Agents will (most often) share their commissions with the other party's representative; many, many times, Business Brokers are not that civilized. (I am a Business Broker, by the way.) This means that you can be represented by a Broker, but as a Buyer, that MAY mean you might get stuck paying him/her for their services, out of your own pocket. Being represented by a Buyer's Broker can be a great asset; but it CAN be expensive and it is not always needed.

Jul 12, 2015

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