You’ve made the decision to buy a business. You’ve done your research and you’re ready to request more information. You click on the link to send an email or you make that call to the Business Broker and you anxiously wait for a return phone call or email. Then you wait and wait and wait but nothing - no response. You’re confused and frustrated as to why the Broker has ignored your inquiry.

Everyday we hear this complaint from Buyers - “I’ve inquired about several businesses but never got a response from anyone.” Ideally, the “average” Business Broker should respond to your request for more information about a business within 24 to 36 hours. If you are having difficulty receiving a response from the business broker, you are either dealing with an incompetent Broker or a one man office or it could be you, the buyer.

Unfortunately, I can’t help you if you’re dealing with a one man office or an incompetent Broker other than to say do not use the services of that Broker if they will not respond to you in a timely manner. That being said, Business Brokers are inundated with inquiries from Buyers concerning the businesses for sale that they represent. 9 out of 10 buyers will never buy a business, therefore Business Brokers must determine if you are one of the nine that will never buy a business or are you that one buyer that will buy the business and begin the adventure you have always dreamed of - owning your own business.

Here are some reasons as to why a Business Broker has not returned your call:

1. Inquires on multiple businesses at the same time

When a buyer’s initial contact with a broker includes interest in more than 2 listings it brings up a couple of concerns for the Business Broker. Their first concern is whether or not the buyer is really serious about buying a business or are they just “lookers” or “tire kickers“. Another concern for the broker - has the buyer thought through the buying process and determined what industry best fits their skill set. A good Business Broker can definitely help a buyer locate the right industry and business that best suits them, however, when submitting an inquiry to a Business Broker it is always best to start with one listing first. Remember, you can always mention to the broker that you’re interested in additional listings and would like more information.

2. Your first contact is a request for detailed financials

Buyers obviously need to see financials for any business they have interest in; however, it is not the first thing you should look at when you are researching a business. A business is more than just what you see on paper. You need to understand location, product, employees, niche etc. as part of the evaluation. Looking at the financials only is not a fair look at the overall business and you might possibly miss a great opportunity if you just focus on the financials. A Business Broker will typically have 3 years of financials for all of the businesses that are listed (there are some exceptions to the rule).

3. You require the physical address of the business

Most buyers in our experience desire a business located close to where they live so they want to know where the business is located. That is understandable, however, all businesses that are for sale are confidential which includes the location. The location of the business is a competitive advantage to the business. To maintain the integrity of the business before and after the sale, the actual address cannot be disclosed until after a non-disclosure agreement has been signed and sometimes not until you have met with the Business Broker to be sure the business is the correct match for you - the buyer.

4. You refuse to sign a Non-Disclosure Agreement

As a Business Broker we must fight against the perception that a business for sale is a negative occurrence. Employees, vendors, customers and competitors must not know that the business is for sale as the employees will become nervous and may start looking for other employment, customers will stop buying from the business and vendors could stop supplying the business. Should a competitor become aware that a business is for sale it could become a disadvantage to the business. This would cause irreparable damage to the current and future business. When a buyer refuses to sign a Non-Disclosure Agreement it creates concern with the Business Broker that the buyer might be a competitor or are they trying to steal proprietary information from the business.

5. You do not provide complete information

Along with the Non-Disclosure Agreement most Business Brokers also request additional information in the form of a Buyer Profile. The profile often requests your contact information as well as details about the industry you are interested in, the amount you are comfortable investing for a down payment and a little bit of background on your skill setetc. These questions are often tailored to the specific Business Broker that you are working with. The main thing to remember is that the more information you can provide the Business Broker the more likely they will consider you a serious buyer.

Business Brokers need a buyer who is able to complete a transaction, however, as I have already mentioned 9 out of 10 buyers will never buy a business. If you are serious about buying a business follow the suggestions above and Business Brokers will want to respond to you to your inquires and help you find that perfect business for you to start the entrepreneur adventure.

Mike Cockroft is a Senior Business Intermediary with VR Huntington Business Group Inc. a VR Business Sales firm in Dallas (www.vrbigd.com).

VR Huntington Business Group, located in the heart of the DFW Metroplex, serves the entire Dallas-Fort Worth Metro area as well as North Texas. The company specializes in Business Brokerage, Mergers & Acquisitions, Business Valuation and Consulting services focusing on small businesses and mid-market companies.