What They Don't Tell You — And What to Do Instead
Most first-time business buyers will immediately look to business brokers for their first deal. It's only natural to search businesses for sale online when you're taking your first steps. But this is jumping into the lion's den.
Don't get Jonathan wrong — business brokers have their place. But you need to know the game to come out the other side with a favourable deal and a profitable business. In this video, he explains the lengths that some business brokers will go to in signing a seller to their books.
Watch to the end to hear Jonathan's one simple rule when dealing with sellers who face the inevitable truth about those inflated valuations.
Brokers work for the seller — not for you. Understanding their incentives is the first step to protecting yourself as a buyer.
Understanding the business broker model is essential for any buyer who wants to negotiate from strength
Brokers win mandates by suggesting higher prices. The seller hears what they want to hear — but the numbers rarely stack up.
Sellers sign exclusivity agreements. Even when the price is unrealistic, they're stuck — and so is the buyer's opportunity.
After months with no offers, the broker slowly brings the seller back to reality — but valuable time is lost.
When dealing with a seller who's been given an unrealistic valuation by a broker, don't try to talk them down immediately. Let time do the work. Wait until the seller has spent months on the market with no serious offers — that's when the real conversation about price can begin.
The buyers who get the best deals aren't the ones scrolling broker listings — they're the ones going direct
Approach business owners directly before they ever speak to a broker. Send letters, make calls, build relationships. The best deals never make it to a listing site.
Brokers can be useful — but only when you understand their incentives. Register with them, let deals come to you, but never rely on them as your primary source.
Consistent outbound activity creates options. When you have multiple deals in play, you're immune to the pressure of any single broker negotiation.
If you've defined your buy box — revenue, profit, sector, location — you can quickly filter broker listings without getting emotionally drawn in.
