California Business Broker .com: Do you need a Business Broker?
Do you need a business broker to buy a business?
Having a special business broker work on your behalf when you are interested in buying a business can truly help you through the process. A buyer will benefit from a broker's experience with past business transactions and the business broker can help the buyer by educating them in helping them make informed decisions. I listed some scenarios below where a buyer may benefit from the professional expertise of a business broker.
You absolutely need a business broker if....
You are pursuing a strategic acquisition. If you are interested in buying out a competitor, buying a vendor or supplier or somehow growing your business through an acquisition it may be wise to enlist the services of a professional business broker. In some cases the broker may be able to anonymously approach potential candidates to see if they have an interest in an acquisition This allows a potential buyer to remain anonymous and it allows the broker to work on behalf of that buyer to work as an independent third party.
You also need the services of a business broker if you are looking for a business that is extremely specific. You are looking to purchase a business that has very specific hard assets such as machinery or technology a business broker may be better suited to take on that type of a detailed search.
If you are interested in purchasing real estate as well as a business then you will need the services of a business broker.
You need a business broker if....
You do not feel comfortable analyzing detailed financial statements, with business pricing or with deal structuring. A buyer is interested in buying a business because of the income stream that that business produces. That income stream is proven through financial statements. A business broker will be able to analyze a businesses financial records, and be able to help the buyer formulate a competitive offer. Additionally, a business broker will work on behalf of a buyer to structure the deal in a way that will make financial sense for the buyer.
It also may be wise to employ the services of business broker if you are too busy to take on the process of searching for a business yourself.If you have clearly identified goals, it may be smart to delegate the responsibility of searching for a business to a broker. This way the broker will search on your behalf and if an opportunity develops that matches your goals you can be notified.
You might need a business broker if...
You probably do not need to contact a business broker if you are simply shopping. By shopping, I mean you are simply analyzing the marketplace and seeing what opportunities are available. If you're not sure exactly what you want if may be wise to talk to a business broker. A short meeting with the business broker can help you learn more about the process, and it can help you clarify what it is you are exactly looking for. It is very difficult for a business broker to search for a business for you without clearly identified needs.
Lastly, if you are not in the position where you can move forward with a business transaction you may want to wait until you contact a business broker. A business broker representing a buyer will only want to present that buyer to sellers if that buyer is ready to move forward. It still maybe a good idea to discuss your needs with a business broker and tell them that you are interested in pursuing the acquisition in the future. When the time is right you can get back in touch with the business broker and move forward with the process of buying a business.
Do you need a California Business Broker? If so you are on the right website. The same innovative strategies that I use to sell businesses can be used to identify good acquisition candidates. Contact me today and we can get the effort started.
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