A prospective buyer seeking a business can gain significant benefit by using an intermediary to acquire a business. A business intermediary brings experienced insight and discipline to the acquisition process. The value of this insight can be significant in dollar savings, the difference between making good or bad decisions, and, most often, can be at no cost to the buyer (i.e. paid by the seller) if done correctly.
There are many value points a strong business intermediary can bring to a buyer.
- Expertise in determining the market value of the business.
- Strong understanding of financial documents.
- Negotiation skills.
- Process and procedural skills.
- Strengths, weaknesses, opportunities & threats (SWOT) analysis.
- Market opportunities.
If you are looking to acquire a business, your first step should be to contact an experienced business intermediary, before you start searching the for sale listings. It will save you time, money and mistakes!
Note in a business transaction, different than a residential transaction, a prospective buyer may end up relying on a seller's representative to provide them with the information they need to make an informed decision. Dual representation, often used in residential transactions, is not a common approach used in the business transaction and the seller's representative does not represent the buyer. The buyer's need for further representation will depend on the strength of the seller's representative and their capability to manage the needs of the seller and the buyer neutrally. If a buyer does not feel their needs are being met in a fair and competent manner, it is recommended they seek independent representation.
Brian Tjaden - The Biz Guy! 612.963.3810 www.briantjaden.com brian@calhouncompanies.com
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