One of the most common misconceptions among business merchandisers is the notion that hiring multiple business brokers or interposers on a nonexclusive base will increase the liability of trade for your business. Although in proposition engaging multiple interposers and having non-exclusive agency means you get the benefit of multiple brokers working on your behalf for the cost of only one( the bone who’s successful), the proposition is defective and the strategy infrequently works to your benefit.
Indeed the hardest working and utmost devoted brokers have a fixed quantum of time and coffers to invest in dealing your business. Since utmost interposers are paid primarily by commission the conciliator takes the threat for dealing your business. thus, it can be argued that without the security of an exclusive agency agreement, the conciliator’s threat exceeds their implicit return.
Illustration Let’s assume you offer Central A nonexclusive agency to vend your business but, have also effectively negotiated nonexclusive agency agreements with interposers B, C and D. Now, all four interposers A, B, C and D are all assuming 100 of the threat on the same sale. They’re each in substance agreeing to invest their veritably precious time, trouble and coffers into dealing the same business. Their maximum implicit success rate is 25 with a minimal 75 failure rate. At best, one broker will succeed and 3 will fail. Business for sale in Pinellas County Florida
Now, you may respond with the following,” As long as one of them is successful, I do not watch about the other three.” Or,” That is the business they are in and they knew that was the threat when they took the job.” Although this is true, the trouble lies in the probability that a broker working with anon-exclusive agreement will actually complete the trade of your business.
Brokers and interposers are by nature threat players but, they aren’t fools. They understand that a nonexclusive agency agreement has compounded threat. thus, utmost interposers will hedge the threat of non-excusive agreements by shifting a maturity of their coffers( time, man power, selling bones, etc. ) to systems with exclusive agency agreements. Why should not they? The threat is mainly lower and the price is frequently equal or lesser. It’s simply a good business decision.