Motivated - qualified before talking to business brokers about businesses for sale
by Broker Service Network at www.brokerservicesnetwork.com
Ask yourself the question "If I find what I want, am I prepared to place an offer?".
You are doing a disservice to yourself, the business brokers and seller if you are not prepared to follow through. All business brokers and sellers assume that interested buyers are prepared to make an offer should the business for sale fit the buyer's needs or wants. All business brokers and sellers put a ton of time and effort into preparing for and marketing the businesses for sale. A "tire kicker" (not motivated) buyer only wastes valuable time better spent elsewhere.
If you were in a service business - would you want a potential client misleading you? Truthfully, this is how business brokers feel if an unmotivated buyer goes through the process.
NOW, if you are a motivated and serious buyer, are you properly qualified - business brokers can help here - to make an offer then follow up on it? Anyone - including business brokers telling you that 100% financing is possible is LYING TO YOU! As a general rule, you will at least 15-20% of the selling price on businesses for sale - liquid cash - to place as a down payment. Next you will need relevant experience in either the industry in question or in past ownership and/or high level sales & marketing. Last, you will need good to great credit - generally a credit score of 680 or higher. If you are unsure about the qualification - contact business brokers for said qualification. All good business brokers qualify business buyers before disclosing businesses for sale.
QUALIFY yourself - do you meet the 3 criteria last above - get a credit report on yourself that you can show a broker/seller. Most business brokers will not require credit reports and/or financial statements but they are good to have in place when looking at businesses for sale.
General Qualification Rules Of Thumb...
- Some sellers will hold up to 80% on a note AND some will not hold a note at all.
- Each seller is different - it's their decision to hold a note - not yours
- Sellers will want you to have relevant experience and great credit if holding the note
- Some sellers or brokers will want a deposit before disclosing financials - DON'T DO IT! It's an old unethical trick by business brokers
- "Liquid Cash" is cash that you can get within 7-10 days.
- Take your liquid cash figure and multiply it by 5 - this is the high end of what you can afford
BSN has certified all business brokers in our network at www.brokerservicesnetwork.com
