I spent a couple of hours today advising a seller about how to sell his deli.  Unfortunately, he had already signed an exclusive agreement with a broker who didn’t appear to be terribly proactive.  I discovered that the only available information about this deli was a spreadsheet covering January – September of last year and a list of assets with no estimated fair market value. 

         Nonetheless, this broker expected to be paid a minimum of $8,000 for his efforts (?).  Furthermore, his contract obviated any relationship with any other broker.  No wonder business brokers enjoy such a sterling reputation! 

          One of my favorite books when I was a kid was “Aesop’s Fables” and brokers who do little to help a client but expect both a commission AND an exclusive contract remind me of one particular fable,   ”The Dog in the Manger”.  Although the dog couldn’t eat the hay in the manger, he growled at the cow who could – making sure that no one benefitted from the hay.

           Before you sign an exclusive contract with a broker – PLEASE determine what a broker is going to do for you.  No one needs a ‘dog in the manger’.