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When buying a business can a broker be used as an agent for the buyer (ie. in real estate). If so, how does h

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We are financial consultants to a group of investors whom we have their consent to manage their funds which is in our custody for cooperation in joint venture business investments.

Our areas of interest include Property Development and real estate, Health Care, Education and training, Mining and exploration, Energy, oil and gas,Technology, Software development, Agriculture, Manufacturing, Finance Services and Leisure.However, all viable proposals within reason will be considered.

Funds shall be made available to you as a direct investment loan at 3% interest rate per annual for a period of 2 or 30 years depending on what you prefer. You may contact us if you have interesting investment proposal for possible business collaboration for our study.

We look forward to your reply to enable us provide you with details or you may visit our website.

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Thank you.

Yours Sincerely
Jesse Peterson
phone: (980) 239-7539

Jun 6, 2017
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Chimera Strategies
Founder and Managing Partner
Nassau County, NY

Great question. As a business broker based in NY, I would pay/ expect 5% of the gross fee.

Gary Kane

Nov 15, 2010
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The BAF Group LLC

Mark, as a Business Broker, I am periodically called upon to represent Buyers; however, that is almost exclusively by Corporate Buyers, rather than individuals. The answer to your question is not so much, how does that work, which is what I believe you were asking; but what do you want the Broker to do for you.

In most cases - and I DO NOT AGREE with this philosophy - the majority of Brokers will not share commissions, the way Real Estate Agents do. This means that you are faced with personally paying the Business Broker for deals s/he brokers for you. For routine, Main Street-types of transacitons, it simply is not usually worth it. And remember that this is a Broker telling you this!

You will need an Attorney and an Accountant to finalize any deal and perform due diligence, with or without benefit of a Business Broker. In MOST (but not all) cases, the Business Broker that is acting on behalf of the Buyer brings little more to the table - at least, not enough to justify paying their fee.

That is not ALWAYS the case. But in the majority of times we where have linked up with a Main Street Business Buyer, it is when the Buyer has no idea what s/he wants to buy. That s/he is uncertain even what industry to pursue. Then, we provide consulting services to determine what s/he brings to the table, in terms of background, experience, skills and so forth, that would seem to lend themselves to an acquisition. That is a rarity.

The higher you go up the food chain, (and by that I mean the larger the acquisition,) the more that Broker can be justified for a Buyer. So, as I said in the first part of this response, it is not a black and white situation - it is a matter of what you feel you need from the Broker, as to whether it makes sense for you and whether it is a justifiable expense.

Nov 11, 2010

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