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Should I use a broker for a business purchase?

On Behalf of | Mar 31, 2023 | Business Transactions |

Completing the acquisition of a new company can be complex. There are a lot of things to consider, and some may be difficult to navigate on your own.

One option you have is to hire a broker. Is this a wise move?

Is your broker in it for the right reasons?

At the end of the day, a broker will want to be a part of your deal so they can make money. They may have a legitimate interest in your success as well, but this is often not the case. Whether or not you get a good deal, the broker will typically be charging the same fee. Once you have entered an agreement, you may also end up tied into a contract that is tricky to get out of.

You’re giving away sensitive information

A broker will have to have access to your accounts and other sensitive information such as trade secrets, plans and projections. They may genuinely like your ideas, but this could be part of the problem. Without having the right protection in place, what’s to stop them from passing your ideas off as their own and establishing a company on this basis or giving the information to a competitor?

Protecting your interests

There are genuine brokers out there, but there are some who only have their own interests at heart. Whether or not you opt for a broker, it is pivotal that you protect yourself legally. Your legal representative has a fiduciary duty to look after your interests and protect your company from harm. Contact us to learn more.