The business is improperly valued resulting in the creation of false expectations for the business owner regarding market value and transaction terms. False expectations of this nature are very difficult to change. It is not IBA’s job, or that of our client, to educate the business owner or seller’s broker on how to properly value a company. It commonly takes multiple failed negotiations for selling parties of this type to become realistic regarding the marketplace for a business. Almost annually, IBA completes transactions for business owners who were previously listed for sale with another firm, but migrated to IBA for representation after failing to sell in a reasonable time period.

The purchase of a business is an investment decision requiring the ability to review the information necessary to properly assess the business opportunity. Unfortunately, it is common for some firms serving the business brokerage marketplace to withhold or not to assemble the information necessary for a buyer to correctly evaluate a business. The inability to review appropriate information during the evaluation process that precedes making an offer can result in buyer frustration, buyer withdrawal from negotiations, and/or a purchase offer being generated and potentially accepted that will not be justified during due diligence. This lack of knowledge of the proper sale process often results in failed negotiations. IBA has a track record for successfully completing transactions it participants in and creating an environment of “full disclosure” for “good faith” negotiations.

The representing broker does not return phone calls, respond to emails, or make the representation project a priority in their schedule. Providing superior customer service is a priority at IBA. We make a sincere effort to respond to all phone calls & emails in a timely manner. Unfortunately, this is not the standard in our industry. It is very frustrating for a buyer or IBA professional to have to wait an extended period for a response when an effort is being made to evaluate a business for acquisition or negotiate in “good faith”.

The representing broker does not have the experience & knowledge necessary to successfully facilitate a transaction. This often results in an IBA professional having to do the listing broker’s job in terms of education on the sale process and deal facilitation. The sale of a business is a sophisticated process that requires years of experience to properly learn & perform. IBA is happy to help facilitate this process on behalf of its clients, but it is frustrating for our professionals when the work load is unfairly allocated between the two intermediaries because one of the brokers lacks experience & knowledge. It is recommended that business owners properly vet the experience & knowledge of their broker prior to signing a representation agreement.