What do buyers and sellers expect from the broker or agent selling a business?
For the buyer you surely expect the broker to have a reasonable factfile on the business and to obtain much of the pertinent data to explore the business prior to offer and due diligence etc.
For the seller you would also want your business to be effectively marketed and presented, would you not?
Why then do so many businesses find themselves represented by volume brokers with little or no interest on any individual client? I occasionally work for buyers and have recently completed an NDA to obtain details of a small Printing Business for a good quality, cash buyer. Despite chasing the broker (a large national name) I have had no response and no information. My client has given up and moved on.
Our businesses are well-represented and I would usually have, as a minimum:
3 years Accounts
Latest management or trading figures
A recent statistic sent to me by a guy who has worked for a major M & A firm (he got the data from Coutts and Co.) is that only 7% of UK SME businesses marketed for sale last year were actually sold. Our success rate is 60%. I wonder if the Print Business in my story above has been sold yet?
Keith Green - Partner, Anderson Moore
Keith Green - selling businesses and advising SME business owners since 1997 and still enjoying it.
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