News & Events
I Received A Letter From A Broker Claiming “I Have Buyers For Your Business”. Is This For Real?
ENLIGN DEAL TEAM | 10/26/2020
It’s very unlikely. This is a trick used by brokers trolling for new listings. Everyone gets the same letter and they wait to see who bites. Most times the broker has a generic buyer that they use liberally as being interested then mass mail to hundreds if not thousands of business owners without regard to location, industry or price point.
They are buying a list and rolling the dice. Those that respond are asked to sign an exclusive representation agreement. When the ‘buyer’ doesn’t work out they have you committed to a 12 month exclusive agreement. If they really had a legitimate buyer for your business wouldn’t you expect them to call you directly and set up a meeting?
After all we’re talking about a transaction of hundreds of thousands if not millions of dollars.I love to call back and ask “What industry is the client you wrote me about interested in?” I’ve never once had a broker be able to answer this question because they don’t really have a buyer. They flounder around with “lots of buyers”, etc. etc.
They are always embarrassed when they realize they don’t even manage their direct mail list well enough to remove “ENLIGN BUSINESS BROKERS”!
ENLIGN has never used this tactic and thinks it’s one of the many unethical methods used by business brokers that give the industry a bad reputation. Why would anyone with integrity want to start a business relationship with the lie “I have buyers for your business”?
When ENLIGN is representing a buyer we contact the owners of target businesses personally and directly – not by mass mail. Don’t fall victim to the direct mail trolls.