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.
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