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Why Using a business broker when selling or buying a business May not be the best idea

When it comes to selling or buying a business there are a lot of methods out there that you can use in order to make that transaction as simple as possible and probably one of the most popular options is working with business brokers. However a lot of people, including us, believe that working with a business broker isn’t the best option and that you should definitely consider other paths as well. In this article we are going to talk to you about some of the disadvantages of working with brokers, so we recommend that you keep on reading in order to find out why we feel the way that we feel.

Hard to find really competent people in the field

For you to even think about working with a broker they would have to be incredibly good at their job, and unfortunately it is more and more difficult every day to find a real professional. There isn’t a lot of regulation when it comes to this field so in a lot of cases individuals simply take the little experience they have and market it as an extensive one and declare themselves business brokers. The problem with this is that if you work with someone that isn’t competent enough you risk having the whole process be a disaster, and that is the last thing you want regardless of whether you are a seller or a buyer. Of course, there are always incredible individuals that are really good at what they do and are real experts in the field, but finding them can be a tough job.

You always have to pay a fee when selling

This disadvantage is mainly one that sellers experience and it is one of the biggest reasons of why we don’t like working with a business broker. When selling a business you need to know that the broker will take a fee that goes from 6 to 10 percent of the whole selling price. This may sound like a small amount but to put it into perspective, 6% out of 500.000 is a whopping 30.000 that will be going to the broker and not you. Because of this we would actually recommend for you to try to sell the business on your first because that way you won’t lose that percentage and only go to a broker as a last resort if the business isn’t selling on the platforms that you are using.

The interest is usually on the seller’s side

When working with a broker as a buyer, the one thing that you always need to keep in mind is that the broker will always put the seller’s needs first because they will always be their main clients. Now, if you are a seller this is a great thing, but if you are buying then you always need to watch out because if there comes a time where your interests and the interests of the sellers don’t align, you can be sure that the broker will have the seller’s interests as a priority. Now, of course, the broker has to be helpful to the buyer and try to help them out in the process as well, but you should always know that your needs won’t be a priority.

Last News

Although it is undeniable that a good business broker has a lot of experience and can be very useful when it comes to presenting the business to clients, or explaining how the process works when you are a buyer, we believe that there are definitely better options out there that will not cost you so much so we leave you with one of the best companies where you can make the best decision to buy a website by categories: https://exchange.shopify.com/categories. We hope that this article has been useful and that you consider other options before making the final decision.