Practice Purchase

[JohnH]

Bob:
In rereading my post, I can see how it could be interpreted that I was suggesting bypassing the broker, but that wasn't what was on my mind. Given this broker's mind set, it seems likely that the seller may have to take things into his own hands if he plans to get anything done. Lazy sales reps often find their clients demanding to be compensated for the sales rep's lack of ability or interest. If I were his client and got wind of this situation I'd be all over him.

I was leaning more in the direction that if the broker succeeds in killing any deal that's in the works (which he seems to exhibit an extraordinary ability to do), then he & the seller might be stuck with a time constraint that forces them to do something unusual. For example, most or all of the final purchase price being contingent on future billings and a huge commission concession in order to get a deal - any deal - done. In sales, sometimes half a loaf is better than none, and given his business acumen I suspect he's taken himself and a few clients down this road before. Just speculating....

[BOB W]

I like to equate this situation with real estate sales people. " Get the listing" and let someone else use their time to getting the sale. Selling requires a lot of time and is a harder job than just getting the listing. The selling broker still only gets half.

Many business brokers get a "lock in" envolving the seller, so they just sit back and wait. When reading a contract a "write-in" should be inserted "no commission if the seller finds his own buyer" > (or something like that).

[ED SMITH]

Run to the nearest exit

I haven't read this entire thread, so someone may already suggested it, but the first question to be asked is--
"Why is the business being sold?"
The answer could reveal more than anything else.

If you show yourself to be to anxious to buy,ey will sense this, and you will get a bad deal.

From what you have posted, I would say, run to the nearest exit.

[Zee]

I haven't read this entire thread, so someone may already suggested it, but the first question to be asked is--
"Why is the business being sold?"
The answer could reveal more than anything else.

If you show yourself to be to anxious to buy,ey will sense this, and you will get a bad deal.

From what you have posted, I would say, run to the nearest exit.

The seller told me they were moving out of state to take over a family business, and does not intend to practice again (that's the story anyway). Honestly, I don't think the situation is a scam. I believe was simply an arrogant broker. I've already walked and won't look back. I won't work with anyone with that much of a lack of professionalism & courtesy.

[JohnH]

Reversing field on you

Zee:
Mind if I reverse field on you here?
Since we're all brainstorming I may as well throw this out.

If you are convinced that the seller is legitimate and he has something of value to offer, then maybe you should leave the door cracked open a wee bit.

Sometimes the best deals are forged after almost everyone has thrown up their hands. There's a whole field of sales theory based on the idea that the first one to say "It's over" gains the upper hand. Sometimes the other party accepts that and walks away. In that case there was probably never going to be a meeting of the minds.

Other times, verbalizing the idea that "It's over" sparks a "fear of failure" reaction in the party who is most invested in the deal and they begin giving concessions they hadn't originally intended to give. If you've ever attended an auction you will often see this behavior when the auctioneer begins his "going once, going twice" routine.

Earlier I suggested that the broker is putting his paycheck in the hands of his inner 3-year-old by acting emotionally. The same thing can happen on either end, so to me the most important thing here would be to keep your options open and forget the emotionalism. Maybe nothing else will come of this, but if I were in your shoes and it came back around, I'd let the children throw their tantrums while I evaluated the business deal.

[Zee]

Zee:
Mind if I reverse field on you here?
Since we're all brainstorming I may as well throw this out.

If you are convinced that the seller is legitimate and he has something of value to offer, then maybe you should leave the door cracked open a wee bit.

Sometimes the best deals are forged after almost everyone has thrown up their hands. There's a whole field of sales theory based on the idea that the first one to say "It's over" gains the upper hand. Sometimes the other party accepts that and walks away. In that case there was probably never going to be a meeting of the minds.

Other times, verbalizing the idea that "It's over" sparks a "fear of failure" reaction in the party who is most invested in the deal and they begin giving concessions they hadn't originally intended to give. If you've ever attended an auction you will often see this behavior when the auctioneer begins his "going once, going twice" routine.

Earlier I suggested that the broker is putting his paycheck in the hands of his inner 3-year-old by acting emotionally. The same thing can happen on either end, so to me the most important thing here would be to keep your options open and forget the emotionalism. Maybe nothing else will come of this, but if I were in your shoes and it came back around, I'd let the children throw their tantrums while I evaluated the business deal.

Sure. The seller has my telephone and email number, and didn't return my telephone calls or emails. The seller is free to contact me anytime. All the seller needs to do is tell the broker, "Thanks, I'll negotiate with the buyer personally. Of course, I'll still pay your commission." The ball is in the seller's court. I can't change that. But, frankly with a commission at stake of $10,000-$20,000 on a $100,000 transaction I don't need this kind of "grief" from an intermediary.