Dealing with Business Brokers

[@LaundromatEntrepreneur]

I like your videos. Unfortunately, I think few brokers are dentists. Most just want to get the listing. They don't verify the financials, and they don't know the industry. Sometimes I think they are just waiting for someone who wants to buy a business and won't do their homework and pay what the seller wants.

[@DavidCBarnett]

Yes, this scenario is out there. I've seen it many times.

[@rockymntdan1]

Sometimes? I've seen it EVERYTIME. And then they wanted me to make an offer before I had ALL the financials. What a joke. Going to search for articles on how to buy without a broker. They're lying real estate agents.

[@james1b14]

Another great video. Tried some of the techniques in this videos with a broker in working with and it totally worked….especially interviewing them - completely flipped the dynamic

[@DavidCBarnett]

Great feedback James. Good luck with the deal.

[@murphybusinesssales-edison]

Great insights for buyers here. Thank you for sharing the knowledge, David.

[@DavidCBarnett]

Glad it was helpful!

[@dangalbraith6187]

Thanks David. I just happened to be dealing with a broker when your video popped up yesterday. Good timing!

[@DavidCBarnett]

I aim to please!

[@BuzzSky]

Best info/explaination!! Subscribed!

[@DavidCBarnett]

Awesome, thank you!

[@geraldlofton]

Most Brokers don’t know Sh*t they will waste ur Time, try to go direct to Owner, even if they have a Broker(let them know that they will still get PAID but u want to speak to owner!!

[@DavidCBarnett]

A good broker will try to get you to have a meeting with the seller.

[@cassiox.fernandes1054]

awesome

[@DavidCBarnett]

Thanks

[@lukegraven7839]

Biz brokers have a real 'holier than thou" and I will tell you what they're just like used car salesmen but instead of used cars, it's used businesses. Some would say they're worse then they have fewer rules to follow than used car salesmen.

[@DavidCBarnett]

There are definitely good and bad ones. I think it's why investing to get to know which kind you're dealing with makes sense.

[@lukegraven7839]

@@DavidCBarnett not to poo-poo your comment but I have not to meet an honest biz broker. I’m sure they’re out there somewhere..

[@NealIsaacs]

@@lukegraven7839 Honest business broker here! David is right about a lot of his comments in his video. It's important to understand the business broker's role in a deal, most often as a seller representative. Some of the things that great brokers focus on are creating an abundance of buyer opportunities for the seller, respecting the seller's time by not bringing unqualified buyers to the table, and ensuring that the buyers don't ask the same questions that the seller has already answered by organizing data. Essentially we want to protect our seller clients as there are some nefarious buyers who will waste time or compromise the business through their actions if we don't manage the transaction properly. David's also correct that good business brokers are managing the seller's expectations before and after the business goes to market. Often times we're encouraging the seller not to poo-poo an offer, but to consider it because we understand the market and don't want them to miss a great deal. Lastly, I'll agree there are a lot of brokers who are "seeking suckers" by listing anything at any price, and it's not helping buyers, sellers, or brokers. Great brokers raise the bar by only representing what they know will sell because it's priced appropriately. Just one broker's perspective!

[@philosophyforum4668]

So if a business broker doesn't have any experience, you should not give him any experience? I thought the idea had to do with ethics, wisdom, common sense, knowledge, being a facilitator, etc. And yet you seem to be describing these more noble qualities while using the word "experience." Experience can also get you someone who knows how to be shrewd. Seems to me what will serve you better is a certain type of person. A lot of this stuff is not complicated. What you are describing doesn't really require a lot of experience, just a little common sense. Experience might add a little more but not much, since he does have training. I'll take someone ethical over someone "experienced" in any transaction for anything in any industry, and I'll bet you would too.

[@DavidCBarnett]

No, the point of the video is to determine how likely it is that the broker has properly prepared the seller. If the broker has a listing that interests you, it doesn't matter how experienced they are or how much you like them. You've got to deal with them.

[@MrGuitarbike]

If it was someone with zero experience, I would want to know they have a mentor that is helping them develop those skills. You don't get a fresh grad designing bridges, because they don't know what they don't know. Experience isn't everything, but competency is.