Full Representation means just that: we represent you as your broker in the process of buying a business. Full representation includes helping you to search for the business, select businesses to review, reviewing the businesses with the sellers (or brokers if the seller has hired a broker) and managing the remainder of the sales process.
The main advantage of Full Representation versus a Consulting Agreement is that you don't pay a dime until closing. What that implies is what that means: If you don't buy a business you don't end up paying any fees.
The main disadvantage of Full Representation is that if you do buy a business, you must pay our firm a percentage of the total sales price of the business you purchase. This is normally somewhere between 10% - 12% of the total sales price. Simple math: If you buy a $500,000 business our fee at closing will be $50,000.
How can we justify a fee that high? Simple: Risk. When we take a client on under Full Representation we work very hard to find the business a buyer really wants. Since we assist the buyer in every step of the process of buying the business it's not uncommon to rack up 200+ hours of work by the time the deal closes.
Guess what we get paid if a deal never gets made? Zero dollars. Literally not a dime. High risk is offset by great reward.
If that's too steep a price in your view but you recognize you still need representation, consider our Buyer Consulting Agreement as a good and less expensive alternative.