It is advantageous for a Buyer to take the time to submit a Personal Financial Statement. If you do not have one, you may find one on my site at www.franzjon.com/forms Please understand any information provided to me is strictly confidential and will not be provided to Seller(s) without your authorization. Below I address the reasons Buyer(s) fear them and reasons Buyer(s) should submit them:

Top (3) Reasons the Buyer Fears to Provide Financial Statement:

1. Misinformed about the business-buying process.
2. Not serious about buying a business.
3. Not in a position to acquire the size business investigating.

Top (3) Reasons the Buyer Should Complete a Financial Statement:

1. Increase Negotiating Position:
1. Seller(s) will recognize Buyer(s) ability to get the deal done.
2. Seller may be willing to hold a note:
1. Shows good faith, honesty and establishes credibility.
2. Seller(s) provide more confidential information and records than a Buyer will disclose. Seller(s) do not need to sign a non disclosure because they have no interest or reason to disclose your financials and if they did why would it matter?
2. Buyer(s) able to focus time on the RIGHT Businesses (Business Broker is able to help focus).
3. Allows Buyer(s) to get a handle on personal financial issues:
1. Start thinking of how much willing to invest.
2. Get your spouse or partner on board so that when the time comes for you to write a check together, there won’t be any surprises.
3. Put yourself in a much better position against other interested buyers on those businesses that you can afford to acquire.

This entry was posted on Sunday, July 20th, 2008 at 5:14 pm and is filed under Ask the Expert. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.