If you are considering buying an existing business, the information in this article can save you a lot of time, money, and frustration.

Listen to this:

Some time ago I was talking to a guy who knows how to analyze and value business.

And he began to tell me why it is a mistake to buy any business that is advertised or listed on a business broker.

“Why is that?” I asked. I’ve never heard of this before. In fact, I’ve always been told that you MUST buy business through a broker. And that doing so was the easiest and safest way to do it.

“Because unless the owner is just retiring and wants to get paid, there is usually a more sinister reason why they are selling,” he replied.

“What do you mean?”

“Well, would you sell your business right now?”

I thought about that for a moment and realized what he meant.

People don’t usually sell good deals.

I know I wouldn’t sell mine right now … unless I started to get rid of the stress or it was so good that I could “cash in” for tens of millions of dollars.

Unfortunately, with most businesses for sale, it’s generally not a retirement issue … it’s a stress issue or some other issue.

And if you just look at the numbers, financial statements and sales … it will usually be clear as a bell what the “real” reason the owner is selling is, good or bad.

And that was my friend’s point.

If you are going to buy a business, you must do two things:

1.) Learn to analyze a business or find someone who will.

2.) Be very skeptical of anything for sale or listed by a broker.

In fact, the best businesses to buy are the ones that are not for sale.

Those in which the owner has not thought of selling … because everything is going well. But who, at the same time, would still be very interested if someone approached you with a letter or phone call making you a lucrative offer.

Keep these simple facts in mind when looking to buy a business and you will save yourself a lot of money, time, and hassle.