Business Broker Training is a vital key to a successful business brokerage career. With a business brokerage training under your belt, you can more confidently approach clients, work with existing clients, or apply for jobs with larger firms. This business brokerage training video covers the art of working with business buyers.

1. WORKING WITH BUSINESS BUYERS
The Most Challenging Globally Recognized Business Training & Certification Programs

2. To be successful as a Business Broker you must understand working with buyers. It goes with
out saying that you must have a buyer to sell a business. What we will discuss in this video
will help to learn about small business buyers and how to work with them.
Who are They?
•They are looking to replace income from a job
OR
•They are looking for an investment to supplement their income
•They are fairly well educated (Associates Degree or Higher)
•They have other advisors that will help them evaluate the business
•They want to be their own boss
•Most fall into the 90% Rules of Buyers
WHO ARE YOUR BUYERS?
Who are your Buyers?

3. The majority of Buyers fall into what Edward Pendarvis calls the 90% Rules. I don’t know if the 90% figure
is exactly right, but most fall into these categories. Understanding this gives you insight into their
motivations and thinking.
• Most are first time buyers
• Most will have to finance the purchase
• Most are not sure what type of business they want
• Most are scared
• Most will need seller financing
• Most will not buy the business they first inquired about
• Most have between $15,000 to $60,000 to put into a business
• Most are comfortable with 10% down
• Most are between 35 to 55 years old, come out of middle management, and are used to
making from $45,000 to $95,000 per year
THE “90% RULES OF BUYERS”
The “90% Rules of Buyers”

4. When working with buyers it is important to follow the correct steps in the correct order.
1.Initial contact with the buyer
2.Get a signed confidentiality and non-disclosure agreement
3.Collect buyer information
4.Determine what businesses fit the buyers profile
5.Disclose a couple of good fits
6.Set up a confidential showing of the business
7.Have a meeting with the buyer and seller
8.Provide condensed financial information to the buyer
9.Help the buyer to submit an offer to purchase
10.Handle the negotiations of the offer until it is accepted
11.Manage the due diligence process
12.Get disclosures signed by buyer and seller
13.Manage the closing process
14.Close the transaction
STEPS IN THE BUYING PROCESS
Steps in the buying process

5. Build Relationships and Cover the Bases
• Handle the initial contact
• Build Rapport with the Buyer
• Brief Explanation of the Process
• Explain and get signed Confidentiality Agreement
• Get Buyer information
• Ask open ended questions
• Present One or Two Businesses that fit
FIRST STEPS
Steps 1 through 5

6. Show and Sell the Business
• Confidential Showing
• Manage the Buyer/Seller Meeting
• Share the overview financials with the buyer
• Help the buyer draft the Offer or LOI
• Submit the Offer to the Seller
• Communicate all counter offers to both parties
• Work for the common ground
• At Contract!
MIDDLE STEPS
Steps 6 through 10

7. Do the hard work and Get Paid
• Manage the Due Diligence Process
• You are the Conduit of Information
• Get detailed financials to the Buyer
• Help the buyer with financing and other contingencies
• Work with the closing attorney to prepare the documents
• Get all disclosures and indemnifications signed
• Make sure everyone knows the time and place of closing
• Close and Get Paid!
FINAL STEPS
Steps 11 through 14

8. Two areas to remember when working with Buyers:
•The technical aspects
•The interpersonal aspects
WORKING WITH BUYERS SUMMARY
Working with Buyers Summary