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How to Buy a Business

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The number of books, programs, computer programs and guides on How to Buy a Business is almost limitless. Many of the ideas presented are sound and reasonable; however, some such as buying a business with no money down fail to consider the old axiom – you get what you pay for - or fail to answer the question, "Why would the owner of a successful business basically give it to a total stranger?" I recently reviewed a presentation that advised the Buyer to insist on meeting the owner at the business during normal working hours. While this may sound like a good idea, it is not very realistic. Maintaining strict confidentiality is important to both the Seller and the Buyer. If the employees, customers and suppliers see a steady stream of strangers (Buyers) touring the business, the Seller's business may be permanently harmed. Also, if you are buying a good business, it is in your best interest that the whole world not know that the business is being sold.
 
Although often overlooked by the authors of these "how to" presentations, one of the smartest things a Buyer can do is meet with a competent ethical business intermediary. A professional seasoned business intermediary can provide invaluable service to you at no charge. Although we are normally compensated by the Seller, we generally spend more time with the Buyer than the Seller. In addition to serving as the intermediary, we provide another set of eyes and ears for all that is communicated between the Buyer and Seller.
 

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