Article
Should I hire a Business Broker?
Inc.com's Buying a Business mentor Tom West responds:
 I'm a business broker, so I can't be 100% objective about this
question. But, in my experience, using the services of a
business broker or intermediary can, in many cases, make or
break a deal. If you're a buyer, a business broker can show you
opportunities that you might never find on your own. Owning a
doughnut shop might sound intriguing until you learn that
someone has to make the doughnuts -- at about 3 a.m. A good
broker can help you keep an open mind during your search and
figure out what you don't want to do -- e.g., run a
bakery -- and move on from there.
It's important that
you remember one key fact: Unless you've hired the broker, he or
she represents the seller of the business. So, no
matter how helpful or pleasant the broker is, he or she is still
in the employ of the seller. However, that doesn't mean he or
she won't treat you fairly. The vast majority of business
brokers deal honestly.
Of course, brokers
are also a great source of information on current market
conditions, issues related to pricing and financing, and many
other facets of the business buying process.
If you're selling a
business, a business broker or intermediary can bring more
prospects to your business than you could ever do on your own.
They'll also separate the buyers from the lookers, which can
save you valuable time. And, in most cases, I think they'll get
you a better price than you could on your own -- more than
justifying their fee. Brokers can also help you price your
business properly, tell you how you can make it more saleable,
and simply be there as a resource throughout the sale.
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