Are You Playing Cards With Your Advisor

The simple truth is that you have to trust your business broker if you want to get the best deal done. Sometimes it feels like we are playing cards with our buyers. They will tell us that they have $100,000 to invest in a business. They don’t mention the fact that they have an additional $250,000 in assets that they are keeping in reserve as a cushion. This comes into play when deals are presented to the seller. Let’s say that there are two deals on the table… Offer A may be the strongest, but is weakened because we did not know there was an additional $250,000 in reserve or that there is additional family income (spouse) that was not shared with us. We have seen the lower offer (Offer B) win in this situation because the seller had to choose the strongest buyer based on more than just price. The seller chose to go with the buyer that was most likely to get bank approval.

The seller wants a strong buyer for their business because they don’t want the business to fail or employees to lose their jobs because of a cash strapped buyer.

Knowing the full extent of your assets will allow us to help you make the strongest offer.