Many business brokers double end all of the client deals. What does this mean? They typically find a business owner that is willing to put his business for sale. Then after the client is signed to a listing agreement he discovers the Business Broker is also representing the buyers he finds. In fact, some Business Brokers don’t allow the buyer to be represented by another Business Broker. This creates the situation where the Broker has a conflict of interest and is trying to compromise at all costs to get the deal to close.
Versant Business Advisors only represents the buyer or seller not both. When we work with a buyer or seller we state in our agreements that we do not do dual representation. We will represent buyers and sellers but never on the same deal. This allows us to avoid the trap of dual representation and any conflicts of interest. We are never in a position of trying to satisfy both the buyer and seller to make a deal happen. If we represent the seller we are working for him and only him to get the best price and terms for his situation. When working with buyers to find a business to purchase the same applies.
When meeting a Business Broker for the first time ask about his policy on dual representation and how he avoids conflicts of interest. If he gives you the standard response that he uses his utmost care and fiduciary concern in representing both the buyer and seller you should steer clear and find another Broker.