3 Reasons Why A Business Buyer Needs Their Own Broker

In the world of business transactions, it is the seller’s side that pays the commission of the broker (or brokers) involved – so why would a buyer need their own relationship with a broker since they don’t have a business to list?

 

There are many reasons why it’s a good idea to have a relationship with your own broker, here’s a few:

 

Someone Who Actually Knows You

 

Entering a transaction with only the seller’s broker (who you haven’t spent any time talking to other than signing an NDA on a specific listing) means that the broker probably knows little to nothing about your goals, your situation and what you are hoping to get out of business ownership. If a broker doesn’t know any of these things about you, how can they properly advise you on a business? The short answer is they can’t. You need to have a relationship with a broker before you are sitting at a negotiating table, hopefully long before. A good broker is going to ask you questions, lots of them. They should find out how much capital you have available, what your past work and educational experiences have been, your goals for business ownership, what you hope your work day will look like, what your dream business would be, how long you hope to own any business you purchase, what industries you are qualified to work in, what industries interest you – just to name a few. Buying a business is a huge decision, and having an expert involved who already knows all of these details about you as a buyer will be instrumental in successfully finding you the right business to buy.

 

A Buffer And A Negotiator

 

You are about to write a very big check to a complete stranger so you can buy their business – a business that has been their life and probably their baby for some time. Both sides will have serious emotional and financial attachments (you to your money and the seller to the business) so it can be tough to get through negotiations without one side or both ending up offended (and killing the deal). A business brokers acts as a buffer between the two sides, allowing forward progress while keeping the two sides away from each other. This role as a buffer during negotiations can be pivotal to the success or failure of a transaction.

 

Help For A New Owner

If you’ve never owned a business before (and even if you have) the lease, property managers, laws, red tape, licensing, permitting, etc. can be daunting and overwhelming if you don’t have help. Having your own broker ensures that you both know what needs to be done and have assistance with making it happen.

 

What if you already know the broker involved? Can you make a transaction happen with only one broker?

 

Yes. If your broker has a listing that fits your goals, then it can definitely be appropriate to only have one intermediary. The key to success in this situation is the broker needs to know both you and the seller.

 

If you are on the road to business ownership, don’t try to go it alone. Having an experienced and knowledgeable broker who knows you can make the transaction process go more smoothly and will greatly improve your chances of finding the right business for you.

 

Are you new in the market and are wondering what you should look for in a buyer’s broker? Have you already tried to shop the market on your own and have a story to share with other prospective buyers? Please feel free to leave comments or questions below, we would be happy to help.

 

 

 

Michael Monnot

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

www.InfinityBusinessBrokers.com

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Problems Later: What To Do When Due Diligence Wasn’t Enough

 

Buying a business can be a scary, scary thing. You’ve been over the numbers, you’ve sought expert advice and you’ve spent the entire due diligence period going over everything with a fine-toothed comb. Surely if there was some underlying issue or skeleton in the closet you’d have found it by now, right?

 

Well, maybe.

 

Businesses are complex, messy creatures. Taking the step into entrepreneurship by buying a business will require a bit of a leap of faith on your part.

 

Even if you go over everything line-by-line there’s a good chance there’s something you missed or something that couldn’t be foreseen.

 

Wait, what? I don’t want to buy a disaster!

 

If you’ve asked the right questions and spent your due diligence period actually doing your due diligence you probably won’t be walking into a mess. You will, however, be walking into a small business that will have it’s issues and ups and downs – it’s the nature of business ownership. There are going to be things that are completely out of your control, and you need to be mentally prepared for the things you will have to face.

 

Going into the process of buying a business already knowing that there will more than likely be problems somewhere down the line will better equip you when those issues come up. It’s far easier to deal with a problem you were expecting than to be blindsided.

 

This isn’t to say that you should be paralyzed by fear that the business you are buying has some hidden fatal flaw. You just need to remember that business ownership is inherently risky, so mentally prepare yourself for those risks and you will be ready to handle them when they happen.

 

Are you thinking about buying a business but are worried about hidden issues? Would you like to know more about the due diligence process? Please ask us! Leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

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

www.InfinityBusinessBrokers.com

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Face-To-Face? Nope. Why Conference Calls Are Important.

 

Some people just like to have meetings. We get that, and it’s a request we get a lot. In a few cases meeting face-to-face with the business seller so you can watch their mannerisms and facial expressions might help you learn a lot about how that person conducts themselves.

 

However, in today’s small business marketplace it’s much more likely that you will do the majority of your meetings via conference call. 

 

Why?

 

Business transactions require a lot of moving parts. The schedules of the sellers, the buyers, the brokers involved and the attorneys involved all need to be considered when trying to figure out when a meeting could take place. If this meeting is to take place at the business that is for sale, it will also have to be scheduled when employees are not present for confidentiality reasons.

 

If you’ve every tried to get 6 or 7 people together for anything at the same time you can imagine how tough that can be. As such, if you are serious about buying a business you are going to have to concede that the majority of initial meetings are going to have to be held over the phone.

 

Conference calls can be taken in a car in the parking lot while the seller is away from their staff. They can happen while the seller is at home. They can happen over lunch breaks or even behind a closed office door.

 

Asking for physical meetings may seem important – but in business transactions they really don’t matter. When you are buying a business you aren’t buying a physical space. You are buying cash flow, so the aesthetics of said space are far less important than the numbers the business generates. Those numbers can be communicated to you via email or share files online and then discussed via conference call, so there is no need to spread paper out on a table and stare at each other in the face.

 

Heading into the business buying process with the understanding that most of your communication with brokers and sellers will be through conference calls will help you to navigate the process more successfully.

 

Wait, does this mean we never meet face-to-face?

 

Absolutely not. Face-to-face meetings are an important part of the business buying process – they are just far more useful much further along in the transaction process. Any initial questions can be answered over the phone and don’t require the scheduling nightmare that meetings sometimes are.

 

Another note – demanding everyone constantly travel to meetings will probably only aggravate the seller and other professionals involved to the point where they might refuse to work with you in the future. If you do make appointments for meetings, do not cancel unless absolutely necessary. Making everyone bend and adjust their schedule and then casually canceling last minute for something other than a dire emergency only shows your lack of respect for others in the transaction and your lack of commitment to seeing the sale through.

 

The point here is you need to be sensible and realistic when asking for meetings versus conference calls. Listen to the advice of your business broker when they tell you one would be better over the other in your current situation. Most things can be accomplished in a phone call that doesn’t require schedule juggling and travel time for everyone involved.

 

Are you thinking about buying a business and would rather have face-to-face meetings? Would you like to know more about how most things can be accomplished via conference call? Ask us! Leave any questions or comments here.

 

 

 

Michael Monnot

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

www.InfinityBusinessBrokers.com

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A Deal Between Friends Or The End Of A Friendship – Why You Need A Business Broker

 

You’ve been going to your friend’s bar for years. You even helped him paint the bar top when he first opened. Now he’s ready to sell and you think you’d like to buy.

 

Buying a business usually requires the assistance of an experienced and qualified business broker because business transactions are inherently tough.  The process of  buying and selling a business is complicated.  Lengthy and detailed purchase contracts need to be negotiated, commercial landlords and property managers need to be negotiated with, licenses and permits need to be obtained – the list goes on and on.

 

Owning your buddy’s bar might fit with your goals for business ownership and you might be able to afford his reasonable asking price – so you might think that there’s no need to enlist professional help to get the deal done. Just a handshake between friends should suffice, right? 

 

While going it alone might seem like a good idea because it’s just a transaction between friends – you dont want to end up in a situation where your friendship is lost over the complications that always arise in a business sale. Complications will absolutely, positively happen. You can not avoid them.  Using a business broker for your transaction will give the two of you as friends a buffer when those complications come up and will allow both sides to get what they need when they need it.

 

Many first-time business buyers and sellers don’t understand all of the nuances and important details that need to be addressed in the purchase of a business. For example, you don’t want to write your friend a huge check only to find out too late that the landlord of the commercial space refuses to transfer the bar’s lease to you as a new tenant. There are a million things that can (and maybe will) go wrong. Having someone involved who has been through the process many times will be essential for success

 

You also should include a business broker if any seller financing is going to be involved. Seller financing is essentially a loan, and in this case a substantial loan from a friend. Friendships have been lost over far less – so using a business broker to help with the seller financing portion of your purchase contract will ensure everyone knows upfront what is expected and what the ramifications are for reneging on the deal.

 

Money and business shouldn’t come between friends, so enlisting the help of an experienced and qualified business broker will ensure that the friendship can outlast the business transaction. Mixing your personal and business life requires everyone to be upfront, honest and on the same page. It also helps to have a buffer should anything go sideways. A business broker can fulfill both of these needs. Protect yourself, your friendship and your future as a business owner by hiring a broker to help you with your transaction.

 

Are you considering buying a business from a friend but aren’t convinced you need the help of a broker? Do you have questions about what a purchase contract entails? Ask us! Leave any questions or comments here and we would be happy to help.

 

 

 

 

Michael Monnot

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

www.InfinityBusinessBrokers.com

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Don’t Drag Your Feet – It’s Costing You Money

Buying a business is a huge decision. You are deciding on a whole new life and are about to write a very big check.

 

We get that.

 

A minor case of cold feet is absolutely to be expected with a decision this big, but the mistake many business buyers make is they allow their cold feet to become a major problem. They let their hesitation overshadow their rational side – and they slow the buying process to a near halt.

 

This will always cost you money.

 

We aren’t saying that you should immediately buy the very first business you look at. You should absolutely take a reasonable amount of time to make decisions about the business you ultimately buy.

 

What we are saying is you shouldn’t procrastinate indefinitely. If you’ve found a good business put in an offer. If you don’t, you risk several scenarios that will mean more money out of your pocket.

 

 

The sellers could decide to raise the price. Many new buyers think that this move is unfair, but a seller is completely within their rights to raise the price of their business if no written offers are currently on the table. If the business is experiencing a period of tremendous growth or if the sellers are seeing a lot of interest in their business and are hoping to cash in on the popularity of their listing – they might decide to get more bang for their buck and jack up the price. If you haven’t put in an offer, your only choice will be to pay the new price or move on.

 

You risk taking over the business out of season. If the business you are considering is in a seasonal market where businesses do well for part of the year and then have to survive the lean off-season (common in areas where tourism is big) dragging your feet could mean you get handed the keys right as the slow season starts. This could force you to eat up your working capital surviving until the busy season starts again instead of using that working capital to grow the business during the period of the year when customers are flocking in your door. Help yourself by using the timing of the sale to your favor. Don’t procrastinate yourself into a rough six months.

 

Another buyer might buy the business out from under you. Time is money, so if you are constantly losing out on good businesses because you are waiting too long and other buyers are pulling the trigger before you do – you will be perpetually stuck in the search phase of buying a business. It takes a fair amount of research time, search time, conversations, meetings, conference calls and the like to narrow down your business choices. Don’t waste all of that time (and therefore money) by prolonging your decision and losing out to a more decisive buyer.

 

You have every right to be nervous about your decision to buy a business, but the most successful small business owners are those who can be rational and decisive when it counts. Do yourself a favor and don’t wait.

 

Are you thinking about buying a business but are nervous about taking the plunge? Would you like to know more about the process to buy a business? Please feel free to leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

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

www.InfinityBusinessBrokers.com

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Buying A Business? The 1st Step

 

Buying a businessFiguring out what you want is the first step.

 

A dream about owning a bar on the beach might not be realistic if you’re looking to have your evenings free to spend with your kids.

 

What do you want your life to look like? What kind of hours do you want to work? What’s going to get you out of bed every morning? These are the kinds of questions you should be asking.

 

A lot about the buying process is deciding what your goals are and then finding businesses that fit those goals. If you don’t know what your goals are, have a talk with an experienced and qualified business broker about what you want out of business ownership.

 

Some people take the jump into entrepreneurship because they want to be their own boss, have control over their own schedule and work for themselves. While these are some of the benefits of owning your own business, they aren’t really well-defined goals. More well-defined goals might be I want to spend evenings with my family, I don’t want to have a job that requires a lot of manual labor and I want to stay within a defined budget in terms of purchase price.

 

You might be surprised that the industry and business has you had initially wanted won’t fit with your goals at all, and another business you would never have considered would better fit the life that you’re looking to have.

 

It’s important to remember that when you buy a business you are essentially buying yourself a job – so just like with a job search you need to have well-defined characteristics that you’re looking for. For instance, when you look for a job you look for jobs you would be qualified for, hours that would fit with the schedule you’d like to have and a location near where you live. You also might consider the amount of money you need to make to maintain your lifestyle. The same goes for buying a business. These are the type of well-defined goals you should come up with.

 

Another consideration? Your family. Whether you want it to be or not, having a business is a family affair. Owning your own business means the buck stops with you, so sometimes that can mean sacrificing time with your family to keep the business running – or maybe even having to bring your family members in as employees in a pinch. It’s important when you start the business buying process that everyone in your family is on the same page and are also on board with potential sacrifices because you don’t want to have issues down the line. An important note here – if you are expecting your children to work in and eventually take over the business, you need to make sure that they are ready, willing and able to go down this new career path with you.

 

If you are ready to start your business search, sit down with your family, come up with a set of goals and realistic expectations for life as a small business owner. Then talk to a business broker about these goals and they can help steer you towards a business that will fit (and make you and your family happy). 

 

Have you always wanted to own your own business but haven’t yet come up with a list of goals for business ownership? Would you like to know what types of businesses would fit with the life you’d like to have? Please ask us! Leave any questions or comments here and we would be happy to help.

 

 

 

Michael Monnot

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

www.InfinityBusinessBrokers.com

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Cash Flow, Your Opinion And The Listing Price – Thoughts For Business Buyers

 

Listing prices can seem like they are all over the map, and to be honest, sometimes they are. Some businesses are listed for far too much – where a seller is unsuccessfully trying to recuperate every dollar they’ve ever invested. Some businesses are listed for so little it seems like they’re trying to hide some kind of massive fault. While the wide scope of prices might make all listing prices look like just an arbitrary number – for the vast majority of businesses for sale they aren’t. Sellers who are motivated to sell and who have the right help from a decent business broker will have their business listed for an appropriate price.

 

As a buyer it might initially seem difficult to determine if what you’re looking at is indeed worth what a seller says it is – especially with things like depreciation, add-backs and multiples clouding the waters. While there are many factors that can add or subtract some value from a business, the most important marker to consider is cash flow.

 

Cash flow is king because that’s what a business is.

 

It is a money-generating enterprise. The money a business makes it what gives it value. This is very different than say, a house. It is the features and aesthetics of a house that will determine it’s worth.

 

Here’s the problem. Some buyers get hung up on the aesthetics of a business, like the condition of the furniture or the color of the walls – and base their own perceived value on these physical things while completely missing the point. You need to be looking at cash flow. And you need to understand that how things currently look and the way things are currently done is what is producing that cash flow.

 

Getting hung up on aesthetics can cause other issues as well. It can make a buyer believe that a business price should be discounted based on a difference of opinion. Let’s go back to the house example.

 

If you walk into a house and you hate the design of the brand-new kitchen you can’t go to the seller of the home and say “I’m decreasing my offer by $50,000 because that’s how much it’s going to take to redo the kitchen.” That would be ridiculous, right? When you buy a house, you are buying it as-is. The same goes for businesses. If you don’t like the way a current owner is doing things or the truck they just bought for the business you don’t get to discount the price because it isn’t something you would have chosen or isn’t a procedure you would have implemented. Again, you need to remember that the way the current owner is doing things is what is generating the cash flow that you’re buying.

 

From the outside looking in, especially with only a cursory glance, you can’t possibly understand the nuances of why a business is generating the cash flow that it does. It can be difficult to look past the aesthetics but it is critical that you do. You need to look deeper and try to understand what it is about the way the seller does things that works.

 

It’s also a great idea to keep from insulting a seller to the point of no return by trying to get a deep discount on a business for something that is essentially a difference of opinion. Talk to your business broker about any concerns you might have, and they can help you come up with a fair offer that will (hopefully) keep the deal moving forward.

 

Are you in the market to buy a business and have more questions about the importance of cash flow? Would you like to know more about how other factors may play into business pricing? Ask us! Leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

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

www.InfinityBusinessBrokers.com

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When Should You Meet The Employees? A Guide For Business Buyers

You are very seriously considering what could soon be your new business. An offer has been accepted, you’re well into the due diligence phase – but the seller is incredibly reluctant to let you meet the staff. What gives?

 

For a Main Street business (think a small business, not a multi-million dollar business) there is a very real threat to the survival of that business if the for-sale status is divulged to it’s employees too soon.

 

This threat comes from the pervasive (but almost always untrue) assumption that a business for sale is a business on the brink of failure.

 

When the staff of a small business hears that the business is for sale, the knee-jerk reaction is to quit en masse – usually taking their regular clientele with them.

 

The loss of all (or even some) of the staff can be a death blow for a business that doesn’t employ that many people. As such, a seller isn’t going to want a potential buyer to meet the staff until after a deal is closed. If the meeting takes place before closing, the seller runs the risk of the word getting out to their staff, their clients and their vendors that the business is for sale. The rumors can and will spread like wildfire. If the current buyer decides to walk the seller is now stuck with an enormous mess and a complete breach of the confidentiality that is so critical in business sales.

 

 

In order to protect the business and retain the employees through the sale, a new owner will typically meet the staff right after closing.

 

Wait, what if I buy this business and then all the employees quit?

 

First, this rarely (if ever) happens. People want job stability, so finding out that a business has changed hands but is otherwise fine is not going to elicit the same response as if those employees found out that the business is for sale. Again, hearing that a business is for sale will cause a staff to completely freak out over the fear that the business is weeks away from faltering. Second, any employees that quit solely because the business was sold are probably not the kind of employees you were going to keep as the new owner anyway.

 

What if there’s one or two very vital key employees? Can’t I meet them?

 

Maybe. In the Main Street business market each transaction will follow it’s own path. In some instances it might be completely fine to meet critical staff while in others it won’t be. Each transaction, each buyer and each seller will have to figure out what is going to work in their particular scenario.

 

The point here is as a buyer you will have to come to the table with the understanding that it might not be in the cards for you to meet the staff before closing. Understanding this nuance of small business sales will keep you from getting stuck on this point during the negotiation process and derailing your deal.

 

Are you considering buying a business and want to know more about why confidentiality is so important? Would you like to know how to best introduce yourself to a new staff? Please ask us! Leave any comments or questions and we would be happy to help.

 

 

 

Michael Monnot

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

www.InfinityBusinessBrokers.com

 

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Buying A Business? 3 Ways To Spot A Good Broker

 

Buying a business is a daunting task, and just like you probably wouldn’t go to court without a lawyer or buy a house without a real estate agent – a smart business buyer needs a good business broker to help them navigate the business buying process.

 

What makes a good broker a good broker?

 

Adherence To Confidentiality

 

When you first inquire about a particular business, you shouldn’t immediately get a seemingly automatic reply with the NDA (non-disclosure agreement) to sign. If you are able to gain access to confidential business information about a business that is for sale without a broker asking you anything about yourself – that broker is not doing their job. One of the most important functions of a business broker is to keep the confidentiality of businesses that are for sale. A breach in confidentiality can be disastrous for a business, and a big part of maintaining confidentiality is determining if the buyers who are inquiring about this business are even buyers at all. You might be a competitor trying to find out if you can steal the best sales staff. You might be someone who can’t possibly afford to buy this business and therefore have no reason to gain access to confidential information. You might be an employee who is trying to find out what your owner is up to so you can warn your fellow employees about the for-sale status of the place you work.

 

The point here is that it can be a bit frustrating as a buyer when you aren’t able to get the information you need immediately. It can seem intrusive that a broker wants to have a conversation with you about your finances and your work experience – but these practices are what you want to see. This diligence where confidentiality is concerned is what separates the good brokers from the bad.

 

Availability And Timely Responses

 

A good broker is busy. They are meeting with sellers, they are assembling comprehensive marketing packages for buyers, they are taking pictures and shooting videos, they are having conversations with other buyers, they are working out commercial leases with landlords and property managers – the list goes on and on. Many new buyers get frustrated when a call (or ten calls in five minutes) goes unanswered. Understand that if your broker is good at their job they won’t always be available. You aren’t their only client – and you shouldn’t be.

 

A good broker will find the time to address your concerns, answer your questions and negotiate with the other parties on your behalf. Just realize that it might not always be an immediate response and that any delay means that your broker is doing their job. 

 

Negotiation And Tied Hands

 

Buying a business is a long and often very frustrating process. Why? There are many personalities and the inherently complicated nature of a small business to contend with. In a transaction there can be buyers, one or more sellers, the buyer’s broker, the seller’s broker, the buyer’s attorney, the seller’s attorney, the transaction attorney, one or more business accountants, the property owner, the property manager and maybe even a few key employees. If you’ve ever tried to get four people to agree on where they should go for lunch, you can guess that trying to get all of the parties involved in a business transaction to agree on a complicated purchase agreement can be a monumental task. Within that task your broker acts as a negotiator and as a buffer between all those involved. This means that when you ask for something from the other side, your broker’s hands are tied if the other side is dragging their feet or refusing to cooperate.

 

The point here is the most successful business buyers are also the most patient, and they also understand how complex their transaction can be.

 

Managing expectations is an important part of the successful purchase of a business – so find a broker who wants to have in depth conversations about your goals for business ownership, your experience and the capital you have available to invest. Look for someone who answers your calls and emails in a timely fashion. Once you have a good broker understand that there are a great many things about a business transaction that they can’t control. Be patient and realistic – it’s the best way to set yourself up for the purchase of the right business for you.

 

Do you have more questions about the business buying process? Would you like to know what information is required for the NDA and why we require that information? Please leave any questions or comments here and we would be happy to help.

 

 

 

Michael Monnot

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

www.InfinityBusinessBrokers.com

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The NDA – Important Information For Business Buyers

If you are new to the business buying process, there are several steps that can seem very uncomfortable – like having to give potential sellers, business brokers and your possible new landlord access to proof of your finances (so those involved in the transaction can see proof that you can, in fact, afford the business you are about to buy). While initially unpleasant these steps are critically important for a successful business purchase.

 

One of the steps for new buyers that can seem unpleasant is the signing of non-disclosure agreements, or NDAs – but it is also one of the most important.

 

What is the NDA and why do you need to sign it?

 

The NDA is an agreement that says you will not disclose any of the information you are about to be given on a particular business – including the fact that it is this particular business that is for sale. Each business you request access to will require it’s own NDA, so the longer you shop for a business to buy, the more NDAs you will have to sign.

 

Confidentiality in business sales is of the utmost importance, so for the protection of the business and the protection of the seller the NDA is a must before any information is given to any potential buyer. It provides the seller of the business with legal protections – meaning legal consequences for a careless buyer who discloses anything about the business to someone they shouldn’t, even telling someone inappropriate that the business is for sale. Without this confidentiality people like the staff, the customers and the vendors might think the business is for sale because it is on the brink of failure (almost never true when a business is for sale) and will leave the business for better prospects somewhere else.

 

The importance of non-disclosure means if you as a buyer are uncomfortable with signing the NDA, you aren’t going to be able to buy a business. The NDA can’t be changed to suit your tastes, it can’t be amended to take the legal risks for you away – it is what it is. Sign it or don’t, but no seller in their right mind will allow a buyer anywhere near their business or their books without this all-important legal protection.

 

If it is the legal repercussions you are concerned about – you shouldn’t be. All you have to do is keep the information you are given to yourself. That’s it. If you tell your neighbor’s wife in a casual conversation at the mailbox that the business is for sale or you talk to your barber about the last three years of tax returns you’ve been shown – those potentially devastating disclosures will land you in hot water. If you talk to your broker, your attorney or your CPA about this business you are thinking about buying – there will never be a need to enforce the legal repercussions of the NDA.

 

NDAs are good for you as a buyer because they keep all potential businesses on the market safe from the disasters an inappropriate disclosure can cause. You don’t want you brand new business adventure to have been damaged by another careless buyer. You also want access to all of the proprietary and financial documentation possible before you buy so you can sure about your purchase before you write a big check. The NDA provides for both.

 

Don’t be nervous about signing the NDA, as long as you do what’s asked of you by keeping the information to yourself – it will get you one step closer to owning your own business.

 

Do you have questions about the legal repercussions of the NDA? Would you like to know more about the process of buying a business? Ask us! Please feel free to leave any comments or questions here and we will be happy to help.

 

 

 

Michael Monnot

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

www.InfinityBusinessBrokers.com

No Comments »




Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907




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