When you’ve entered the business-for-sale market, you will find that some businesses are 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?
Business brokers are also known as business intermediaries because they act as a buffer between the parties in a transaction so that the transaction happen.
In business transactions, the buyer and seller are the boss. A 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.
This freedom allows for a buyer or seller to ensure they are getting what they want, but it has the pitfall of allowing one side to offend the other and kill a 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.