How To Show Your Business Broker AND The Seller That You're A Serious Buyer
Business brokers deal with numerous inquiries from prospective buyers every day. Unfortunately, most are not considered serious buyers
. Many have unrealistic expectations about what type of business they are qualified to operate, and what they can afford to buy.
Here is how you can stand above the pack
and show both your business broker and the seller that you are a qualified and motivated buyer.
Have you been forthcoming in providing your qualifications?
Your broker needs to know that you are both managerially and financially qualified to consider the potential acquisition. If you do not provide the qualification information requested, you will not likely be considered a serious buyer.
Do you have the required funds available?
The typical acquisition requires about one-third of the purchase price as down payment. In addition, funds will be needed for closing costs, professional fees and working capital.
When you find the right business, are you prepared to make a realistic offer?
In today's market, many businesses sell for the full asking price. If your initial offer is less than 90% of the justifiable price, you will probably not be considered serious. Prospective buyers who put in "low-ball" offers to test the waters are usually wasting the broker's and the seller's time, as well as their own. These buyers are often reaching to buy much more business than they can afford.
Is the offer accompanied by a reasonable good-faith deposit?
Serious buyers show they are committed by including a deposit of 10% of the purchase price with the offer.
When you're serious about buying the right business for your needs, call Lou Pereira at 603.890.6628 or contact us directly via e-mail.