Don't Fall For The Typical Seller and Business Broker Sales Pitch
As you go about this process, you will be exposed to some very aggressive sales tactics. Sellers will tell whatever they think you want to hear in order to convince you to buy their business. They will misrepresent their financials, make all kinds of promises about the future of the business, and will either hide, or come up with excuses for any problems.
Then you have business brokers. Remember, they represent the seller or the deal, not the buyer. Their goal is to sell you a business, and they are definitely not going to disclose anything to jeopardize the deal. They will tell you that the business is "an opportunity of a lifetime"and you'll get their standard sales pitch that there are other offers, or lots of interesting buyers, or my favorite, when they say it's the best business to come onto the market in a long time. Just remember who they work for - the other side!
While you want to listen to what a seller or broker tells you, it is critical that you validate every single thing they say. If you take their word for it, you're going to get sold.
There is a lot involved when buying a business and in today's economy especially, there is so much more to lookout for and investigate in every business. You have to be on guard and know what you’re doing, because the last thing you want is to be sold a bad business. If that happens, you will have a financial disaster on your hands.
The positive side is that buying a good business is something that anybody can do. But don't fool yourself; buying a good business takes time. It takes effort. Above all, it takes very specific knowledge.
Knowing how to determine what type of business is right for you and where to find it, compiling an accurate valuation, arranging financing, negotiating deal terms that eliminates your risk, and uncovering every potential problem before you buy it, are just a few of the skills you must possess to be successful in this endeavor.
Although I have purchased ten businesses of my own (I've since sold nine of them) and have worked as a buyer's advisor and business broker in over 500 transactions over the past 19 years, I still learn something new with every deal. That is why I cannot comprehend how anyone with little or no experience would even consider trying to buy a business without first learning everything they possibly can about each phase of this process. Not doing so is simply reckless and borders on insanity!
It is just common sense that whenever you make any major decision, you should always equip yourself with as much knowledge as possible and surround yourself with experienced and advisors.
Our program ‘How To Buy A Good Business At A Great Price’ will provide you with all of the knowledge you need to successfully navigate your way through each step of the business buying process and every situation you will face along the way. Plus, the free ongoing expert consulting you receive from us will insure that you make all the right decisions.
To read the entire list of every topic we cover in our program visit our course outline page.
The material contains over 500 pages of simple-to-follow proven strategies plus legal agreements, automated valuation spreadsheets, interactive resources, case studies, and a business plan template required by all major lenders.
If you have any questions about our program or on the subject of buying a business, please feel free to contact me at anytime. It will be my pleasure to assist you.
Richard Parker
Diomo Corporation - The Business Buyer Resource Center
email me directly
N. America: 1.800.541.9195 ext. 83
International: 954.492.5508
