Contacting a seller

by a searcher from Millersville University of Pennsylvania

9 months ago

I inquired with a broker about a business for sale back in July. The business wasn't the right fit for me at the time. Some things have changed and it looks like the business still hasn't sold based on the website still showing the original owner as the owner. I'd think if it had been sold that would have been changed. The broker no longer has the business listed on their website. Would it be acceptable at this point for me to reach out to the business owner directly to see if they're interested in selling?

0 likes
188 views
10 comments

intermediary from California State University, Northridge

Contacting the seller directly and making a deal is fine as long as you notify the broker that you're putting a deal together. Our listing agreement has a 3-year "tail." This means that the broker is owed his fee if the seller closes a deal with a buyer introduced by the broker within that time period. If you go around the broker and close the deal with the seller, both the buyer and seller are liable for the brokerage fee plus substantial penalties.

5 months ago | like reply | 0 likes

searcher from INSEAD

First thing, check the details on the contract you signed with the broker

6 months ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Self Funded Acquisition: A few Things I Learned

Examples of self-funded searcher websites

2 Best Ways To Find Motivated Sellers, Off-Market Deals

6-7x for a Self-funded Search Deal?

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.