Many new buyers enter the business-for-sale market with the expectation that buying a business will be a lot like buying a house. As such, it is fairly common that a new buyer will contact us for the first time one afternoon requesting that we spend the next day driving them around and “showing them some businesses”. To be completely frank, this is absolutely impossible.

Why? I’m going to be spending a lot of money on a business, why can’t you accommodate me?

First of all, a business and a house are completely different animals. Houses are sold by sticking a sign out front and a lockbox on the door. The address of the home is listed on multiple websites and is made available to anyone who might be interested in buying.

Business sales are completely different because of the importance of confidentiality. We are talking about existing, operating businesses. Think about the last time you heard a business was for sale. You probably said to yourself something along the lines of “they must be bankrupt and going out of business” or “I wonder what’s wrong with the business that’s forcing them to sell”. This powerful, yet untrue misconception that a business for sale is a business on the brink of failure can cause untold havoc for a business seller.

For this reason the status of a business for sale is held with the utmost confidentiality. The only people who know the business is for sale are the sellers, the business brokers involved and any buyers who have signed the appropriate non-disclosure agreements. That’s it.

The mission is to keep the fact the business is for sale a well-guarded secret from the staff (they may all quit and take their regular clientele with them), from vendors and suppliers (who may cancel contracts) and from the public at large (who may take their business elsewhere if they believe that the business is going under).

Confidentiality means there are a few more steps to the process than driving up to an address, but these steps protect the integrity of the business. If the integrity of the business remains intact, then a successful business can change hands without any issue and continue on as a successful business. These successful transitions happen everyday, but can only happen if all parties involved follow the appropriate procedures.

For these reasons you as a buyer will have to be patient with the process.

What is the process? Click here to read Part 2.

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

https://infinitybusinessbrokers.com