Google+
Archive for 'Beware Sellers!' Category

SBA Lender “Bait and Switch” : A Nasty Practice

By Hoke - Last updated: Tuesday, October 27, 2015

The SBA guarantees 75% of a Business Acquisition Loan. If the Buyer can make a 25% Cash Down Payment, in the event of a default, the Lender can collect the entire loan balance from SBA. It has no risk of cash loss. As written, the SBA program is wonderful and very helpful. However, Lenders have […]

Some Brokers Make Money by NOT Selling Anything: A Nightmare Tale…

By Hoke - Last updated: Wednesday, November 19, 2014

I all starts very innocently with wording in the broker’s Representation Agreement “in the event of an escrow default by buyer, the escrow proceeds are split equally between broker and seller”. This is how the nightmare begins… Think about this. Now the broker now makes five times more money (50%) in the event of an […]

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 […]

Leases: A Cautionary Tale

By Hoke - Last updated: Friday, August 6, 2010

If you have decided to sell the business, why renew the lease? You have an “excellent” relationship with the Landlord. Here is a not so uncommon cautionary tale. Ready to retire, the Seller put his excellent, very profitable, key location retail business on the market. The Business was valued at about $600,000. He reasoned that […]