Q: The business broker I've been using is also representing the seller. Is this a normal situation and am I responsible for all or part of her commission?
A: This situation does happen quite often but you may need to rephrase your question as the business broker may not be "representing" you at all. Business brokers almost always represent the seller (or the deal if they're in the capacity of a transitional broker). Their fees are paid by the seller so you must have the broker clarify what their role is specifically in this transaction.
If their fiduciary duty is to the seller, they may provide you with some advice/guidance but they will not jeopardize their relationship with the seller. Their mandate is to sell the business for the best price and terms possible, on behalf of the seller. You cannot expect the business broker to be 100% in your corner and while you may not have to be overly concerned that there's just one broker in the deal, ultimately, YOU need to possess the knowledge to negotiate a favorable deal.
|Get more expert advice in Richard Parker's How To Buy A Good Business At A Great Price - the most widely
used reference resource and strategy guide for buying a business.
|Richard Parker is the author of: How To Buy A Good Business At A Great Price, the most widely used reference resource and strategy guide for buying a business. He has purchased ten businesses in his career and has helped thousands of prospective buyers worldwide learn how to buy the right business for sale. He is also founder and President of Diomo Corporation - The Business Buyer Resource Center.|