| Business brokers/Intermediaries specialize in | | | | who negotiate where to meet or require |
| helping business owners sell their firms. Most | | | | considerable information before meeting are |
| brokers represent the sellers rather than the | | | | generally considered not very serious about |
| buyers. As a result, these intermediaries are | | | | buying a business. |
| responsible for qualifying buyers to weed out "tire | | | | 2. Show proof of available financial resources: |
| kickers" and make sure that only buyers with the | | | | Brokers only work with buyers who can |
| motivation and financial resources to purchase a | | | | demonstrate that they have the financial |
| business are presented to sellers. There are two | | | | capabilities to purchase the business or borrow |
| reasons for the need to qualify buyers: | | | | the necessary funds. Buyers should not be |
| 1. Save the broker's and sellers' time. Statistics | | | | offended when asked for proof of financial |
| have shown that only 10% of buyers actively | | | | capabilities. |
| looking to purchase a business end up buying a | | | | 3. Show focus and determination: Asking |
| company. The other 90% never buy any | | | | information about too many unrelated businesses |
| business in their lives. | | | | is generally interpreted as lack of focus and |
| 2. Protect the sellers' confidentiality. The company | | | | discourages brokers from working with buyers. |
| could be substantially harmed if the word goes | | | | Unfocused buyers are very difficult to work with |
| out that the business is for sale. Confidential | | | | as brokers cannot identify their needs and as a |
| information should only be given to serious buyers | | | | result cannot help them. |
| to reduce this risk. | | | | Business brokers can be an excellent source for |
| What should a buyer do to be considered a | | | | detecting the right company to purchase. They |
| serious buyer? | | | | know the market and can help serious buyers |
| 1. Spend the necessary time: Buying a business is | | | | locate and purchase profitable firms that fit well |
| time and energy consuming. Serious buyers are | | | | with buyers' personalities and goals. However, |
| not afraid to devote their time to research the | | | | buyers interested in getting the most value from |
| right business. Intermediaries generally require that | | | | brokers should be ready for purchasing a business |
| buyers come to their office for a meeting before | | | | and should prove it. |
| providing them with more information. Buyers | | | | |