Business Buyers + Sellers: Why You Should Prepare For The Last Minute Panic

Posted in Become a Business Owner, Business Broker Why & How, Buyers Articles, Sellers Articles

Published October 28, 2024

This one feels like it happens in every deal. The contract is nearly complete, the licensing is in the works, the closing date is finalized – and BOOM. Someone in the deal panics.

 

 

It’s usually over something seemingly small. A minor discrepancy in the inventory. Needing to change the date of closing to accommodate the schedule of an attorney – something that probably wouldn’t have mattered early on in the process.

 

In the closing days and weeks at a transaction, however, these minor issues can become deal killers. Not because they should be, but because everyone’s cold feet only need the tiniest of excuses to run for the hills.

 

Why are we talking abut this? As business brokers, this is one of the many parts of our job. We get deals through to closing by keeping everyone from panicking over something that isn’t significant enough to lose a well-prepared, fully-researched and amicably-negotiated deal. If you know going in that the other side (or you!) might try to back out of the deal over something that can be easily remedied as the closing day approaches – you’ll be less likely to be surprised by these last-ditch cold-feet moments.

 

Instead, you’ll see what’s really going on. A lot of money is about to change hands. Someone is giving their blood, sweat and tears to a stranger. Someone else is buying a job you can’t really quit on a whim. EVERYONE is nervous. The key is to keep your nerves from getting in the way of your better judgement.

 

If you’re in the home stretch an the other side suddenly wants to burn the deal to the ground over something trivial, don’t panic. Let the business brokers do their job and understand that these last minute issues can and do get resolved every day in the business marketplace. If it’s you that suddenly wants to bolt, call your broker and talk to them before you blow up your deal. Tell them about your concerns. Last minute doubts are sometimes valid, but it’s best to figure out if what you’re worried about is legitimate or just your cold feet talking – before you alert the other side that you’re out.

 

Remember that business transactions are a long process that sometimes get mired in the emotions of those involved. If you know going in that one or both sides might be apprehensive near the end you will be better prepared to deal with this potential issue.

 

Have you been a part of a deal that fell apart and have a story to share? Would you like to know more about what types of issues cause problems at the end of a transaction? Ask us! Leave any questions or comments and we would be happy to help!

 

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

 

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How To Balance Confidentiality Versus Marketing Exposure: Thoughts For Sellers

Posted in Business Broker Why & How, Sellers Articles

Published August 1, 2024

Business brokers get a lot of questions from business sellers, and one of the most common topics revolves around how to bring in buyers without letting the world know that the business is for sale.

 

Why is this an important point? Confidentiality during a business transaction is paramount.

 

 

As a seller, you don’t want the competition, your staff, or your vendors to know the business is for sale until the deal is done. A competitor can exploit your status, employees may jump ship, and vendors might tell their other clients about your impending business sale.

 

Discretion and confidentiality, therefore, are the name of the game when it comes to selling your business.

 

As a small business owner, however, you may find this counter-intuitive. The way you have brought success to your business is by getting the word out there. You have used networking and marketing strategies to make sure that as many people as possible know about your business and what you can do for them. You have put out campaigns that may have included mailers, signs, posters, emails, and flyers. The more people you reach and the louder your message, the better.

 

So how do you balance the need to bring in buyers with the need to keep the whole thing under wraps? Don’t go it alone.

 

Confidentiality during a business transaction is one of the most important responsibilities that a business broker brings to the table. Trying to market your business yourself can lead to disastrous results, as it can be hard to know who to trust and who to disclose your sale status to.

 

Your business broker will be able to market your business in a variety of ways:

 

-A good broker has access to business-for-sale databases that are available to other brokers and even to those who are searching online on their own. These listings give a prospective buyer a good idea of your business and the numbers without knowing which business it is. If they are interested in finding out more, they will be required to sign a non-disclosure agreement before they are allowed to know any business or location specific details. You can even specify a list of those (like competitors or employees) who you would like to be kept from finding out your business status.

 

-Most brokers also have lists of prospective buyers, so when your business gets listed they will let those folks who’ve been looking for a business like yours know that it’s available.

 

-Business brokers also have contacts within the local business community, and are therefore able to let interested parties know about your business without giving any specific information that would let someone figure out which business is for sale.

 

-Depending on the type of business you have, certain types of marketing may work better than others. An experienced broker will know which methods will bring in the right buyers and which methods are a waste of time. They will be able to implement a marketing plan for your specific business accordingly.

 

The message here is the confidentiality of your business sale is of the utmost importance, but so is getting you a buyer and getting your business sold. By employing the services of a qualified and experienced broker you can have the best of both worlds.

 

Are you a business seller who has had issues with confidentiality? Do you have questions about how we can market your business successfully while keeping the whole transaction under wraps? Ask us! Leave us a comment or question here and we will be happy to help. 

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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Empowering Yourself: Why Business Buyers Need To Do Their Own Independent Research

Posted in Become a Business Owner, Business Broker Why & How, Buyers Articles

Published March 11, 2024

In the complex list of necessities when buying a business, one aspect often overlooked is the buyer’s role in conducting thorough research. While your business broker can offer valuable guidance and expertise, you can’t relying solely on them to make every decision. They can’t. At the end of the day, all decisions are yours – so business buyers need to take a proactive role in their research and decision-making process, empowering themselves to make informed choices. 

 

Here are some thoughts to consider:

 

 

Be Realistic About What Your Broker Can And Can’t Do

 

Before delving into the buyer’s responsibilities, let’s first acknowledge the vital role that business brokers play in the acquisition process. A reputable broker brings a wealth of knowledge, experience and industry insights to the table, guiding buyers through every step of the journey. From finding potential businesses to negotiating terms and navigating due diligence, a skilled broker acts as a trusted advisor – helping buyers make informed decisions and achieve their goals. However, it’s essential to recognize that while brokers can provide valuable support, they cannot—and should not—make every decision on behalf of the buyer.

 

You Must Must Must Do Independent Research

 

Business buyers must recognize the importance of conducting independent research to supplement the guidance provided by their broker. While brokers can offer insights based on their expertise, it’s ultimately the buyer’s responsibility to thoroughly evaluate potential businesses/locations/terms and assess their suitability. Independent research allows buyers to gain a deeper understanding of the market landscape, industry trends and competitive dynamics. By conducting market analysis, financial due diligence and risk assessments of their own, buyers can mitigate potential pitfalls and make well-informed decisions.

 

Your Broker Is There To Help, But They Aren’t You

 

Relying solely on a broker to make decisions simply isn’t going to work. This is your money that will be spent, your day-to-day life as a business owner that needs to be lived and your choice as to what that ultimately looks like. You also have to live and work in this community. Does the area have the amenities or lifestyle you’re looking for? Are there places to live nearby the business where you could potentially buy or rent a home? Where are the schools your kids might need? Are there local concerns, like crime or frequent natural disasters that you will need to account for? The point here is only you can make choices on the litany of variables you need to consider before you buy a business. 

 

In the world of business transactions, the importance of independent research cannot be overstated. While business brokers play a valuable role in providing guidance and expertise, buyers must take an active role in conducting their own due diligence – on everything (from the business to the school districts and beyond) to ensure the life as a business owner you’re after is the one you end up with. 

 

Are you looking at businesses to buy but hadn’t thought about researching the community? Would you like to know more about how a business broker can help you find a great business? Ask us! Leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

 

 

 

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Why You Should Choose Loyalty And Honesty With Your Business Broker

Posted in Business Broker Why & How, Buyers Articles

Published February 12, 2024

In the world of business transactions, finding the right broker can make all the difference between a smooth, successful deal and a potentially disastrous outcome. Yet, the decision to stick with a particular broker often raises questions. Is loyalty to a business broker really necessary? If someone comes along who says they can do it better, should I listen? And why should I avoid someone who tells me what I want to hear? Let’s delve into these questions to understand the importance of loyalty and honesty in the realm of business transactions.

 

 

When you are choosing whether or not to work with a particular business broker, you should be looking to form a strong partnership. Working with just one business broker over an extended period of time means you develop a relationship built on trust and understanding. Loyalty fosters a deeper connection between you and your broker, allowing for open communication and a better grasp of your business goals. By staying loyal to a business broker, you benefit from their familiarity with your personal preferences. This knowledge enables them to tailor their services more effectively to meet your specific needs, ultimately leading to more successful outcomes.

 

On the flip side, choosing a broker solely because they tell you what you want to hear can be a recipe for disaster. While it may feel reassuring to hear constant affirmation and promises of easy wins, it’s often a sign that the broker is more focused on pleasing you in the short term rather than prioritizing your long-term success.

 

A reputable business broker should provide honest and realistic assessments, even if it means delivering news that you may not want to hear. This level of transparency is crucial for making informed decisions and avoiding risks associated with the transaction. A broker who challenges your assumptions, presents alternative viewpoints and provides candid feedback demonstrates a commitment to your best interests.

 

When you prioritize honesty and integrity in your relationship with a business broker (instead of just needing to be told what you want to hear) you set the stage for a more transparent and productive collaboration. An honest broker will provide you with a clear picture of the market landscape, potential challenges and realistic expectations regarding the transaction process. 

 

Are you looking to buy a business and have questions about what a business broker can do for you? Have you had an experience with a broker who only told you what you wanted to hear and have a story to share? Please leave any questions or comments here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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Bad Advice From Strangers: Why You Really Need A Business Broker

Posted in Business Broker Why & How, Buyers Articles, Sellers Articles

Published February 5, 2024

We all do it. We have a question about something, so we pick up our phone and ask Google. Or Reddit. Or Facebook Groups. While some of the information you can glean from online sources can be useful, it is a terrible idea to take online advice as absolute fact if you don’t know the qualifications of the person giving you that advice. The chances of the anonymous person commenting on your post being an expert in their field is probably pretty slim.

 

 

This is particularly important in the sphere of the purchase and sale of small businesses.

 

Why? The small business marketplace is a small world, and as such there really aren’t that many professionals overall who specialize in the sale and purchase of small businesses – and there’s even fewer who actually know what they’re doing.

 

Aside from the fact that the professionals who help people buy or sell businesses, known as business brokers, are relatively few in number there is an entire cohort of part-time or fly-by-night imposters who don’t think they need special expertise to help someone with a business transaction. We’ve encountered real estate agents, attorneys, accountants – even dentists pretending they are business brokers that can help you sell or buy a business as their side gig.

 

What this means is the people (well meaning or not) who are giving you advice on how to use EBITA to value a business or how to properly market your business for sale via a Reddit thread are unlikely to have any idea what they’re talking about.

 

Business transactions are inherently delicate for a number of reasons. There’s a lot of money changing hands. One person is selling their blood, sweat and tears while another is buying themselves the job they’ll be doing for the foreseeable future. Complex contracts are involved. Everything needs to be done under a veil of confidentiality so the business can stay in one piece.

 

A transaction involving so many moving pieces needs a careful hand to guide it. Someone who is experienced, qualified, has the industry connections and know-how, understands the possible pitfalls and has the integrity to keep everything above board. That person is a business broker, and probably not the person commenting in your Facebook Group.

 

What you need in the place of anonymous online advice is a conversation with a practicing, experienced and qualified business broker. Talking with a real person who knows what they’re doing will be exponentially better for you path to business ownership or your business sale than taking terrible advice from people who have no clue what they’re talking about. Calling a business broker can save you from untold amounts of agony by going into the business transaction process with real, factual information.

 

Do yourself and your future a favor. Don’t take advice from anonymous groups and call a business broker instead.

 

Have you fallen into the rabbit hole of online advice about buying or selling a business and can’t tell the good advice from the bad? Do you have questions about how a business broker can help you through the transaction process? Ask us! Please leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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Don’t Communicate Without An Intermediary: Why You Should Keep Your Broker In The Middle

Posted in Business Broker Why & How, Buyers Articles, Sellers Articles

Published December 11, 2023

 

If you’re in the middle of the process to buy or sell a business, it can be tempting to contact the other side without using your business broker.

 

Why?

 

Say you just have one simple question, and to get that question answered you would have to call your broker, your broker calls the other broker, they ask their clients and then the answer gets passed back to you in reverse order.

 

This might seem incredibly inefficient, but the system is in place for a reason.

 

Let’s use the same example. You only have the one question, so you skip the intermediaries and call the other side. The conversation starts out innocently enough, but then your one question turns into five more, and as you continue asking the person on the other side becomes very offended by your questions, gets angry, hangs up and then decides not to move forward with the deal. Your one question just cost the whole transaction.

 

Business brokers, also known as business intermediaries are there for one reason, to protect the transaction. This is an incredibly important role, as without an intermediary most deals wouldn’t make it to closing.

 

Business transactions are inherently complicated, as someone’s hard work and someone else’s money are about to be exchanged. Like it or not, both buyers and sellers in business transactions have a lot to lose, and many seemingly innocent questions and statements can be misconstrued as offensive and can cause deals to fall apart and both sides to lose money.

 

Another major pitfall of going around the intermediaries? In almost all business transactions, there is a training period that occurs shortly after closing. Want to know what’s not fun and is seriously unproductive? When a buyer and seller hate each other and then have to work together.

 

Don’t make the mistake of trying to go around the intermediaries in the process. Your broker is there to act as a buffer and is there to help you, so keep them in the middle and you will have a far better chance at transaction success.

 

Are you a buyer or seller who has questions about the role of a business broker in your transaction? Ask us! Please leave a comment or question here, and we will be happy to assist you.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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Navigating Negotiations – Why You Should Listen To Your Broker

Posted in Become a Business Owner, Business Broker Why & How, Buyers Articles

Published November 27, 2023

When you enter the business-for-sale market, you will find that some businesses are listed really, really high – priced no where near what you would be willing to pay. If you are still really interested in the business, you can put in an offer that makes sense to you.

 

If these two numbers are so different, how do buyers and sellers come to an agreement on the difference?

 

 

Negotiations and intermediaries.

 

In business transactions, the buyer and seller are the boss. A business broker has to let a seller set the price of their business, and on the other side, whatever a buyer chooses to offer the broker must present to the seller. Business brokers are known as business intermediaries because they act as a buffer between the parties in a transaction so that the transaction happen.

 

Having someone in the middle allows a buyer or seller to ensure they are getting what they want, but the nature of business transactions means both sides can do or say whatever they want – which sometimes means one side offends the other and kills the deal.

 

If you are a buyer preparing an offer, and your broker is telling you that the offer is only going to offend the seller – it would be wise to listen. You always have the ability to walk away from the deal, but you would be surprised how many buyers and sellers are able to reach a middle ground that works for everyone if both sides are able to stay amicable.

 

The moral of the story? Listen to the advice of your business broker!


Are you a buyer who wants to know how to make offers that will keep both you and a seller happy? Ask us! Leave a comment or question here, and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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Great Broker/Bad Broker: How Asking Questions Ensures The Best Help

Posted in Business Broker Why & How, Buyers Articles, Sellers Articles

Published November 13, 2023

Like any industry, there are great business brokers and there are those who shouldn’t even call themselves business brokers.

 

How do you ensure that the broker you choose to list or buy with is one of the great ones?

 

 

Ask questions.

 

What kinds of partnerships do they have with other brokers and with broker’s associations?

 

If a broker is a lone-wolf of sorts with no industry connections, they might have a tough time properly marketing your business or getting access to the listings you are interested in.

 

How many transactions have they closed in the last year?

 

If a broker has only closed one business transaction in the last year (or none at all), they are likely not the broker for you. Results will speak volumes about work ethic and knowledge of the industry.

 

Do they work in a very large office with many brokers, or do they work in a much smaller brokerage?

 

The benefits of choosing a broker that is part of a much larger firm may be the associations with other brokers that they have in-house. This might give you access to more listings and more potential buyers. Just remember to ask about a broker’s individual results. The firm they work for may have sold 50 businesses last year, but they may have only been responsible for one. On the other hand, there are some in the industry (usually those who are part of a very large office) who will tell you that using a one man shop or a small brokerage is a mistake. This is not necessarily the case. Look at results and inquire about the industry associations they have. A one man shop or a small brokerage might be your best bet because they are able to achieve success without the backing of a larger firm – a surefire testimony to how they work.

 

Are they really a business broker?

 

This might sound like a ridiculous question to ask, but it is an important one. Some involved in the real estate industry will try to help clients with buying and selling businesses while they are working on home and property listings. Selling a house and selling a business are two completely different animals. You might have a great realtor, but that doesn’t mean that they will know the first thing about a business transaction. Other types of professionals may try to broker business transactions as a side business. Business brokers are specialists and their field, so use an actual business broker for any business transaction if you want to ensure success.

 

Are past clients happy?

 

Look for a business broker with positive reviews and testimonials from former clients. Ask about whether they have repeat clients, and if they have any references. Also inquire about how they get the majority of their new business. If it comes from referrals, then you know they are good at what they do.

 

As with any major business decision, do your homework. The right choice of business broker can make your buying or selling experience a very positive one.

 

Are you a buyer or seller and want to know more about how to choose a business broker? Would you like to know more about how we help our clients through a business transaction? Ask us! Leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

 

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Why A Franchise Buyer Needs Their Own Business Broker

Posted in Business Broker Why & How, Buyers Articles

Published October 23, 2023

Are you interested in buying a franchise? Do you already have a franchise in mind that you would like to be a part of?

 

 

If you answered yes to either of these questions, you might think that your first step is to get in touch with the person in charge of new franchises or franchise sales. This should NOT be your first step. Your first step is to find a business broker familiar with franchise sales and hire them to help you.

 

Why? Don’t the franchises themselves have people who can help me?

 

They do, and they don’t. Some franchises do have a business intermediary or business broker of sorts, but what you need to question is where the loyalties of a broker employed by the franchise will be. They most certainly will not be with you.

 

Something else you should know. The commission paid to a business broker at the close of a business sale is paid by the seller of the business. Franchise companies without an in-house broker will essentially use the broker who is the lowest bidder. Is that the kind of person you want helping you? Buying a business is a major personal investment; you will definitely want quality instead of someone else’s bargain.

 

When you are buying a franchise, you want someone on your side who can help you through the ins and out of the process. Using an affiliate of the franchise might not be the best fit for you, so do a bit of homework beforehand and get yourself a broker who is qualified, experienced and above all there to assist YOU.

 

Are you interested in buying a franchise, but you have questions about how to begin? Would you like to know what types of franchise businesses are currently for sale in the areas you’re interested in? Ask us! Please feel free to leave us a comment or question here, and we will be happy to assist you on the road to franchise ownership.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

 

 

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You Don’t Want Us To Tell You What You Want To Hear: Choosing A Business Broker

Posted in Business Broker Why & How, Sellers Articles

Published September 28, 2023

When it comes to selling your business one of the most critical decisions you’ll make is selecting the right business broker. A trustworthy and experienced broker can be your guiding light through the complex process of selling your business.

 

One of the first things you’ll discuss with potential brokers is a listing price for your business. A caveat here: not all brokers are created equal – and it’s imperative to choose one who tells you the unvarnished truth about what your business is worth.

 

It does you no good to go with a broker who only tells you what you want to hear. 

 

Why would a broker tell you what you want to hear instead of listing your business for a realistic price? Your listing benefits them whether your business sells or not. 

 

 

A business broker who lets you list your business for whatever you want only wants your listing because the listing generates calls from potential buyers. Those potential buyers aren’t going to go for your absurdly priced business, but the broker doesn’t care because they can just offer those buyers a different listing that’s more reasonably priced. This is an important (but ugly) part of the business-for-sale market that’s important for you to understand when you’re deciding on a broker. The broker who pushes back, who is brutally honest and has the rationale to backup their thoughts is far, far better for your success than the guy who tells you yes to anything. 

 

Here’s why:

 

Many business owners understandably have a strong emotional attachment to their business. You’ve likely put in countless hours and your blood, sweat and tears. Consequently, you may overestimate the value of your business based on sentiment rather than a realistic assessment of market conditions, financials and other objective factors. This is where a blunt business broker becomes invaluable.

 

A broker who actually has your success as the primary goal will conduct a thorough and objective business valuation based on market trends, financial data and industry benchmarks. They won’t inflate the value to appease your expectations, but rather provide an accurate assessment, even if it’s less than what you had hoped for.

 

While it’s natural to want a ton of money for your business, a good broker will help you set realistic expectations. Look for someone who backs up their thoughts with real metrics and has your best interest at heart, whether you like what you hear or not.

 

Would you like to know what businesses like yours are currently selling for? Do you have questions about how we help you put together a realistic listing price for your business? Ask us! Leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

9040 Town Center Parkway
Lakewood Ranch, FL 34202



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