When Brindabella Business Brokers sells a client’s business, the one comment we always receive is why do we need to provide so much information upfront. Some of the items we ask for are 5 years of financials, leases, plant and equipment inventories, staff rosters, further capital requirements, franchise agreements, add backs, items not accounted
for etc.
Due to the level of information required, some businesses may take a month before we list them on the open market. Whilst it might seem onerous at the time, this level of information delivers confidence to the buyer to proceed forward in discussing the business further.
This level of commitment upfront from the business seller creates a two way street with the buyer. A lot of information has been handed over so for the buyer to obtain more information, they have to be just as forthcoming. As a business broker/business seller some of the questions we require further information to are:
* do you have the finance to buy the business?
* have you approached the bank to start the process of obtaining approval?
* do you own your house or what assets you have?
* what experience do you have in the industry?
* do you already own a business?
If the buyer does not want to be upfront, than they may not be that committed to buying the business or after talking with them they may not appear the right buyer for this business.
As a business broker we realise it might be the buyer’s first business purchase. Therefore we are there to help guide them through the correct steps in buying a business. Similarly, we have many first time business sellers. I can say, along with my sellers and buyers, that the process can be quite involved. A good broker works to ensure both the seller and buyer overcome any roadblocks so both achieve their main goal – to buy and sell a business.
