WINTER 2021
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The client demands overly burdensome requirements of buyer prospects before
releasing any information to them, such as wanting to know who the buyer is prior
to giving out information on the business, or requiring the buyer to provide their
financial information prior to giving out the seller’s financial information.
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Restricting meeting times and showing of the business facilities to late evenings,
weekends, or many days in advance.
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The client is slow to respond to buyers’ request for information about the business.
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The client is not willing to respond to a buyer’s offer even with a counteroffer.
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The client imposes unreasonable criteria on a transaction, such as wanting the closing
to be at his place of business, not willing to provide a reasonable training period after
the sale, and/or not willing to sign a reasonable non-compete agreement.
Yes, client’s sometimes do change their mind about selling. It is called seller remorse, but
rather than tell the broker to take the business off the market and perhaps incur a fee,
they impose unreasonable provisions that ensure the business will not be sold.
In business brokerage the two things we have to offer a client is our time and knowledge.
When we waste both of these attributes on transactions that are not going to happen, it
is time to cancel the listing and walk away. But first, it may be necessary to review your
listing agreement to ensure you do not violate any provisions of the agreement, such as
having collected an up-front service fee, committed to specific type of marketing services
you have yet provided, or tried your best to communicate with the client to resolve the red
flag issues. When informing the client you are canceling the listing agreement, do so in as
positive manor as possible so that you do not burn any bridges. Reminder, the client is
likely to talk with other people about his/her experience with you and your company.