Q: Is it legal for a business broker to refuse access, when they do not represent you, for not giving them your financials?
I have been looking to purchase a business and I have to go through paranoid brokers with 9 page NDA's that tell you that they are liable for nothing (must be nice). They do not represent me, and clearly state that in the NDA's. They, however, REQUIRE financial information to include cash reserves, loan status and various other things. Now I get why they want to have vetted buyers. Some just make you attest to the wherewithal (acceptable). However many flat refuse to move the process without it - claiming a right to the info. I have not refused access many times now for not giving it. Is this legal? They are a professional predatory negotiators; forcing people to give up one of the largest bargaining chips to transact - is this not them giving an illegal unfair advantage due to them being professionals and us not being? Are consumers not legally protected from this predatory behavior? Is there a pre-emptive legal doc I can use to stop this? Any recourse? TN, SC, NC, FL
A:
The answer you all your questions is staring you in the face: Fight fire with fire.
FYI: Every seller's broker on the planet is always looking out for the best interests of the person or business that employed them to SELL the business--not the prospective buyers.
So if you feel at a disadvantage--and you should--why not try hiring a BUYER's broker--or better yet--an experienced business savvy lawyer--who will always be looking out for YOUR best interests?
PLEASE do not say you cannot afford to protect yourself. If that is true you have no business trying to buy a business.
Terrence H Thorgaard and Keith Kanouse agree with this answer
A: If you don't want to deal with the broker, don't; contact the owner directly. If the owner wants to sell to you they can, although they might have to pay the broker a commission.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
