11/8/05

What Are Some Potential Business Owners/Sellers Thinking?


I got a referral the other day for another motor repair shop from the guys who's motor repair shop I just sold. So I call this lady up and we chat on the phone, I tell her I'll come and see her and we'll we what we can do with her numbers.

I always have the seller prepare before I get there. I want to see P&L's for the last couple of years and tax returns for the last three, etc... So her place is in Pomona which is like 50 miles from where I live.

No problem, I drive out there in my leased car, racking up the miles not to mention the gas. I get there she's very nice we go through her numbers thoroughly, we chat I do her evaluation, I take pictures... I spent two hours with her plus my driving time. I wasn't back in my office for a couple of hours when she calls me to tell me that she is already listed with another broker and has been for months, there is still another 4 months remaining in her contract and they won't let her out of the contract.

She's says, "sorry I didn't tell you before." DA!


Comments & Advice From Peter:

I also learned this the hard way when I was a business broker. When a potential client/seller calls you about a listing, you should probably ask many more qualifying questions with one of them being, "Are you currently listed on the market or have you ever been listed on the market for sale in the past?" I always had about 15 qualifying questions for sellers before I spent time with them taking a listing agreement. Now you know what to ask before you make the drive . . .
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