12/7/05

The Numbers Just Don't Add Up


Today I have a meeting to sell a restaurant with another broker. It's someone who actually saw the place a long time ago and has now come back into the picture. The difference between selling something quickly or not has a lot to do with the credibility of the numbers.

When I first got the listing I posted the numbers the seller gave me. Every time I went in there he was slow. I sent so many people to go see the place and the one comment that keep coming back to me was,"it was kinda slow the day I went".

It was kinda slow every day, it seemed. I finally told him are you sure these are your numbers? That's when he admitted he might have exaggerated a bit.

I redid sales and now it looks more in line but think of all the time we wasted and the potential buyers that walked away.

From now on when I think it's not right I'm just going to speak up faster and call a spade a spade.


Comments & Advice From Peter:

Business owners can be unrealistic, not in tune with their financials, and sometimes downright wrong about the "financial aspect" portion of their business. Before taking a listing I always recommend to brokers to take a look at all financial information and documents for at least the previous three years - tax returns, financials etc - never take an owners word for "how the business is doing", 90% of the time you'll get burned - and what a waste of time for all parties involved in the deal!
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