The Truth About Business Brokers With Jonathan Jay 2023

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In this CZcams video, Jonathan Jay interviews Rob Goddard, a former business broker with 20 years of experience in business acquisitions and mergers. Rob shares his experiences and insights into the world of business acquisition, including the truth about business brokers and how to purchase an established business.
They start by discussing Rob Goddard 's first business sale and how it felt to have the trust of the client in selling their business. Rob then talks about his high conversion rate in selling businesses, which he attributes to his team and his approach of being honest about a business's value.
Jonathan Jay and Rob Goddard discuss the problem of overvaluing businesses in the industry. It is crucial to have an honest conversation with a seller about the real value of their business and agree on a realistic number.
Jonathan Jay and Rob Goddard emphasise that the value of a business is not just about the price but also about other factors, such as speed, certainty, and exit. When approaching potential sellers, it's important to ask about their ‘magic number’, or the capital sum they need to move on with their life, instead of asking for the value of their business.
Rob Goddard talks about the importance of having honest conversations with potential sellers and setting realistic expectations. He shares his experience of sellers wanting double or triple the price he thinks is reasonable and how he handles such situations.
He sheds light on the experience of working with a business broker and the need to read and understand the small print before signing the contract.
Finally, Jonathan Jay and Rob Goddard talk about the importance of deal structure and the two options that Rob was offered when he sold his business in 2017. They conclude that having a clear acquisition strategy is key to a successful business merger and acquisition.
Many newbie buyers are tempted to approach business brokers to purchase an established business. However, Jonathan Jay and Rob Goddard advise against it since the interests of brokers and buyers are not aligned.
Brokers can be frustrating to deal with, but there are exceptions, and Jonathan Jay has worked with some professional brokers who have done their bit. He emphasises the importance of deal flow and consistency in purchasing an existing business.
If you're considering purchasing a business, this video will provide valuable insights into acquisition, acquisition strategy, and how to buy an established business that will help you make an informed decision.

[@theDealmakers]

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Thank you!

[@ralphbaker3756]

bring him back again, one more at least

[@philosophyforum4668]

When the business broker said 3-5% success fee - is that the same as commission? Is that his total compensation paid when the business sells?

[@theDealmakers]

Yes, that's right. Usually an upfront feel as well

[@steveharman8907]

Am I hearing rhis right.? This lovely chap is promoting to his clients tht they ONLY sell with money up front..?

[@theDealmakers]

That's because he's a business broker - he works for the seller!