5 Reasons Why Brokerages May Not Take You Seriously

 

Buying a business is an exciting journey, but it’s not as simple as walking into a store and picking something off the shelf. When you’re working with a brokerage to find the right business, they’re looking for buyers who are serious, prepared, and ready to make a deal. If you don’t show up as a credible candidate, brokerages may not take you seriously—and that could mean missing out on the perfect opportunity.

 

Brokerages act as the middlemen between buyers and sellers, and they deal with a lot of inquiries every day. To stand out, you need to show them you’re not just window-shopping. This means being transparent, prepared, and respectful of their process. In this article, we’ll break down five common reasons why brokerages might not take you seriously—and how to avoid these pitfalls so you can build trust and get the support you need to find your dream business.

 

1. Lowball Offers

Example 1: Imagine you’re selling a business you’ve owned for 10 years. You’ve poured your heart into it, built a loyal customer base, and finally decided it’s time to move on. Then, a buyer comes in and offers half of what you know the business is worth. How would you feel? Probably frustrated, right? Brokerages feel the same way when buyers make lowball offers.

 

Brokerages work closely with sellers who have realistic expectations about their business’s value. If you come in with an offer that’s way below market value, it signals that you either don’t understand the business or aren’t serious about buying. Instead, do your homework. Research similar businesses, understand the financials, and present a fair offer backed by solid reasoning. This shows the brokerage—and the seller—that you’re serious and respectful of their hard work.

 

2. Lack of Preparation

Example 2: Let’s say you’re interested in buying a business, but when the brokerage asks about your budget, industry experience, or financing plans, you don’t have clear answers. This lack of preparation can make brokerages see you as a time-waster rather than a serious buyer.

 

Brokerages need to know you’re ready to move forward. Before reaching out, take time to figure out your budget, the type of business you’re looking for, and how you plan to finance the purchase. Being prepared not only helps the brokerage help you but also shows you’re someone they can trust to close a deal.

 

3. Not Knowing the Industry

Example 3: If you’re interested in buying a business but don’t know the first thing about how it operates, brokerages may question whether you’re the right fit. For example, if you’re looking at a flower shop for sale, you should understand things like seasonal demand, perishable inventory, and customer trends. Sellers want to know their business is in good hands, and brokerages are there to ensure that

 

Take time to research the industry. Understand the challenges and opportunities. Even if you’re new to the industry, showing that you’ve done your homework will make brokerages take you more seriously.

 

4. Refusing to Sign an NDA

Example 4: When you’re looking at a business, the brokerage will likely share sensitive information like financial records, customer data, and supplier details. If you refuse to sign a Non-Disclosure Agreement (NDA), it can make you seem unprofessional or untrustworthy.

 

Signing an NDA is a standard part of the process, and it shows you respect the seller’s confidentiality. It’s a small step that goes a long way in building trust with the brokerage and the seller.

 

5. Not Providing Proof of Funds

Example 5: If you’re serious about buying a business, you’ll need to show you have the financial means to make it happen. Brokerages won’t waste their time—or the seller’s—if they’re not confident you can close the deal.

Be ready to provide proof of funds or a pre-approval letter from your bank. This shows the brokerage you’re a credible buyer who’s ready to take the next step.

 

6. Bonus: Not Having a Letter of Intent (LOI)

A Letter of Intent (LOI) is a formal document that outlines your interest in buying the business and the basic terms of the deal. If you’re not prepared to submit an LOI when the time comes, brokerages may see you as uncommitted or disorganized.

 

An LOI doesn’t lock you into the deal, but it shows the seller and the brokerage that you’re serious about moving forward. It’s a key step in the process, and having one ready can set you apart from other buyers.

 

Why It Matters

Let’s say you find the perfect business. It’s in a great location, has a strong customer base, and the seller is ready to retire. But if the brokerage doesn’t take you seriously, you might never even get the chance to make an offer. By avoiding these five mistakes, you’ll position yourself as a serious buyer who’s ready to take on the opportunity—and brokerages will be more likely to go the extra mile to help you succeed.