I don’t know about you, but zombies have always been the scariest movie monsters for me. They used to be your neighbor, your friend, your 10th-grade teacher – and now they just shuffle around, looking for some brains to eat. They don’t even know they’re dead. Thank goodness there’s always someone with a plan and the right weapon to take care of business.
Part of a broker’s job is to protect sellers from zombie buyers. Zombie buyers might as well be eating your brains; they can waste an enormous amount of a seller’s time, energy, and resources on a deal that’s going to be dead on arrival.
A broker with the right experience can make sure you don’t have to deal with a buyer who isn’t serious. I’ve been in the HVAC business for years, and I can tell when a prospect is just kicking tires. A broker with a large industry network knows who might be connected to a competitor and trying to get some inside information. We know the buyers who have been presented with several deals that meet all their criteria but who never make an offer. Or make an offer that’s so low that it’s not worth considering.
An experienced broker can also protect you from buyers without the experience or credentials to take over the business. You’d be surprised at the number of prospects who don’t understand the licensing requirements for an HVAC business. Many lenders who don’t do a lot of HVAC deals aren’t even aware of the issue. That’s why it’s one of the first questions I ask prospects.
If a buyer doesn’t have a license, he’s taking a big risk. In most states, it takes years to get a license: completing a training program, passing the exam, spending years in the field and getting experience as a foreman. It’s not a quick process.
If the buyer thinks that having a key employee hold the license is an option, he’ll have to be very careful in his choice. An employee who holds the license becomes indispensable; your business literally depends on his skill and dedication to the company. If he quits, or worse, stays on and becomes a problem, you’re in a tough place.
An experienced broker will also vet prospects to determine if they have the financial ability to get a deal done. It’s our job to make sure that by the time we introduce them to a seller, we have a good idea that they have the cash on hand or can secure the financing. Good Intentions alone don’t get deals done.
Finally, a broker can keep a deal moving. We make sure buyers (or sellers) don’t drop the ball or miss critical deadlines. We always try to bring more than one prospect to a seller so they can determine which one is the right fit for the company. When you only have one offer, you’re always tempted to settle for it. When you have several offers to choose from, you can make the best decision for you and the business you’ve worked so hard to build.
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