Especially for New Buyers — Do THIS Instead
Most first-time business buyers start their search on broker websites — and that's often the biggest mistake they make. Jonathan Jay explains why new dealmakers should avoid broker-listed businesses and instead go directly to business owners.
Business brokers are typically paid a commission based on the sale price. That incentive structure creates a cascade of problems: inflated valuations, unrealistic seller expectations, "massaged" numbers that make businesses look more profitable than they really are, and over-confident sellers anchored to a price that's impossible to justify.
Once a business has been hyped up and listed publicly, it can take years of rejection before the seller is willing to face reality — and that's time and energy you don't need to waste.
If you're serious about buying your first SME, this approach can save you months — and hundreds of thousands of pounds.
A business worth £500k might be listed at £750k. After 18 months of no buyers, the seller might drop to £600k — still over market. Meanwhile, you've wasted months negotiating backwards from an inflated anchor. Going direct to owners lets you negotiate from reality, not fantasy.
Jonathan explains why cutting out the broker transforms everything — from the price you pay to the relationship you build.
The bottom line
Going direct doesn't just save money — it gives you access to deals that never hit the open market. The best businesses are bought, not sold.
