Business Broker vs Business Consultant
Are you ready to buy a business?
It is important to understand the difference between a Business Broker and a Business Consultant before you seek help.
Business Brokers:
Hired and paid by the seller on a commission base when the sale is closed.
Will offer to the buyer only the businesses he has existing agreements with. Has his commission in mind.
Although Brokers call themselves consultants most have limited training. Their focus is on selling the businesses in their portfolio and may provide only the information and data that will help the sale.
Business Consultants:
Hired and paid by the buyer, on a “fee-for-service” base and no commission.
Will research the best fit for the buyer from all the opportunities in the market. Has the buyer’s interest in mind
Will perform due diligence of the targeted businesses and give recommendation on how to run and improve the business. Consultants can help owners grow and expand their businesses.
It is certainly tempting to work with a broker, especially because their services are free for the potential buyer. However, brokers have a biased agenda, and it is critical that the buyer recognize that they earn their money from the seller.
If money is no object, a true business consultant is the best option, since this individual will work directly in the buyer’s interest. He or she also isn’t confined to recommending businesses from a specific and limited list of commission partners.
In addition, he or she performs the business due diligence that is essential when buying a business.
Even if a buyer chooses a business without using a consultant, he/she should consider hiring one to perform the due diligence.
Contact us to help you find the business that will be the best fit for you..
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