22 Jun Two Types of Buyers to Avoid
Last week’s webinar covered topics related to the qualities that business brokers and M&A advisors should be looking for when selecting the buyers to work with. One of the single most important steps a business broker or M&A advisor can take towards achieving success with finding optimal clients is to understand what characteristics mark a serious buyer. Jim Parker presented his thoughts during our informative “The Anatomy of a Serious Buyer” webinar. Parker’s view is that a business broker’s time is very limited and valuable. Knowing how to spot buyer red flags is an essential part of being successful in the industry.
About Jim Parker
Jim Parker is a practicing business broker with 20+ years of experience. He is also the Founder and Owner of Boss Group International in Florida where he consistently ranks in the top 50 of all Florida business brokers in sales. Currently, Parker is the State Chairman of the Business Brokers of Florida, which stands as one of the nation’s largest business brokerage organizations with 1,000+ members. Dedicated to giving back to the community, Parker is an instructor at both the International Business Brokers Association and the Business Brokers of Florida.
The Endless Searcher
There are many buyers that are, as Parker calls them, “endless searchers.” This type of buyer may ultimately become a real buyer, but for all practical purposes, working with this individual is a waste of time. The endless searcher buyer is a buyer who has been looking for many years and never finalizes any deals. Simply stated, the endless searcher should be avoided.
The Nosy Competitor
A second type of problematic buyer is the “nosy competitor.” No doubt, competitors can be excellent potential buyers. But the fact of the matter is that many business owners will pose as buyers simply to glean information on the competition.
Parker recommends using substantial caution when interacting with prospective buyers, especially until more information is known about the buyer and NDAs have been signed. It is vital for business brokers to remember that anyone can call you or email claiming that they are a “very interested buyer.” But the truth of the matter may be very different.
Respecting Your Clients
It goes without saying that you’ll not only want your clients to respect you, but you will want to show respect for them as well. When you maintain high standards and only bring serious buyers to your sellers, it goes a long way towards showing you respect them. Just as your time is valuable, the same holds true for your sellers.
In our next article, we’ll dive in and explore a range of great tips that Parker has for helping business brokers find serious buyers. Regardless of whether or not you’re new to the brokerage industry, using the tips in this upcoming article will help you find the right buyers for the businesses you represent.
