Have you ever gone after a “For Sale by Owner” business and used a buyer’s agent to do it?  This is perfectly legal in the real estate world, even though it requires a commission be paid to one agent, but a seller can still refuse to work with a buyer who uses an agent.  The same thing is true with FSBO opportunities for small businesses.  People who want to use a broker are welcome to do so; regardless of whether the seller wants to use one.  If you’ve been avoiding FSBO opportunities because you want to work with a business broker, there is no need to do that.

While there are still some benefits to working without a broker - one of them being a zero-commission transaction and the other one being speed – there are also several reasons to have someone working behind the scenes on your behalf.  Non-brokered business transactions can work well in certain situations, such as when you are buying a business that’s virtually identical to one you already own, and you know the market for your products in the neighborhood where the new business is located.

In a recent article published on BizSale.com, “FSBO Business Opportunities – The Pros and Cons,” the author makes a strong case for using a business broker.   Here are just a few reasons to rely on a broker or agent for your business acquisition:

1. A business broker can help you identify the best FSBO opportunities to grow your current business, or that meet your strategic business objectives.
2. In a situation where the seller is not willing to negotiate, or not forthcoming with financial information, a broker can steer you away from that opportunity before you waste any time.
3. Brokers are educated about business law and they know what needs to be included in an agreement of sale.  Plus, they have resources to help with financing the sale.
4. A business broker excels where there is a complex business transaction, and can bring in the right mix of accountants and lawyers to get the job done right.
5. Your time is important, and a broker will save you a lot of it by gathering the information you need to purchase the business. This may include permits, licenses, tax information and business valuation data.

If you are considering a few FSBO opportunities and ready to buy a business, read “FSBO Business Opportunities – The Pros and Cons” on the BizSale.com website, and check out their business directory listings.