Archive for 'Business Brokers' Category

Broker Pressure Tactic: “There are Other Buyers Interested!”

By Hoke - Last updated: Sunday, February 9, 2014

Use of ” There are Other Buyers Interested!” is a grossly overused broker tactic. Some brokers say this with an air of great urgency to every buyer as a knee jerk reaction. Sellers often encourage brokers to use this tactic. We discourage use of this tactic when no other buyers exist. First of all, how […]

Why a Buyer’s Business Broker Often Fails to Find a Quality Business

By Hoke - Last updated: Tuesday, January 28, 2014

Let’s discuss what goes on when you have most brokers perform an acquisition search. It is simple. They get on the internet Business for Sale websites and start looking. It is important to know that about 95% of internet business listings are from brokers, not principals. It is also important to understand that there is […]

Good Faith Deposit / Beware of Broker Trust Accounts

By Hoke - Last updated: Friday, January 3, 2014

A Good Faith deposit is often required to accompany the offer. The amount is typically 10% to 20% of the sale price. Because it is impossible to really really know if the sellers claims are valid without solid verification, most reputable business brokers will hold the Good Faith Deposit uncashed until Due Diligence is successfully […]

Internet Acquisition Search

By Hoke - Last updated: Sunday, September 2, 2012

The most common, least effort and least costly is the internet search. See The best websites to find a California Business for Sale. The buyer can perform the search themselves and contact the sellers directly if they wish. Many Business Brokers will perform this service for the buyer. However there may be a disadvantage of […]

Real Estate Broker as Business Broker

By Hoke - Last updated: Saturday, September 1, 2012

Although anyone with a valid California Real Estate License may sell business opportunities they should have a good understanding of accounting, business values and the business sale process. Some buyers want their friend or relative who sells homes to represent them and make a commission. Understanding the benefits of a recent termite inspection does not […]

Dual Agent or Buyer’s Agent?

By Hoke - Last updated: Saturday, September 1, 2012

An experienced and ethical dual agent who represents both parties can be beneficial to the acquisition process because a more direct communication and ability to really understand the needs of buyer and seller. Yet a dual agent without both experience and ethical responsibility can be a real liability. An experienced and ethical buyer’s agent can […]

The disadvantage of letting the business brokers search for my acquisition

By Hoke - Last updated: Saturday, September 1, 2012

Unlike residential real estate, listing business brokers are not contractually obligated to cooperate (split commissions) with another business broker who represents a buyer. To make a higher commission percent, a high percentage of listing business brokers will not cooperate with other brokers. Your agent normally will not have access to these listings. If you would […]

Beware the Inept Business Broker

By Hoke - Last updated: Friday, July 27, 2012

I recently sat in a disaster of a closing meeting as a paid consultant (not as Broker). The purpose of this meeting was for the buyer, seller and landlord to sign a Lease Assignment and close the deal. Unfortunately, the broker who was to provide the Lease Assignment never showed this complicated three page lawyer […]

Why do Business Brokers get 10% and Real Estate Brokers get 6%

By Hoke - Last updated: Sunday, August 15, 2010

Ten Percent is the longstanding traditional Business Brokers Commission. Why? It’s the Market Fee that almost everyone else charges.  Why do Real Estate Brokers get 6%? It’s the Market Fee that almost everyone else charges. Is 10% too high? Aside from the required Accounting and Financial background, here is our take on this issue. The […]