I am filing this update to my first report on The Veld Group to clarify a couple of my points/complaints made in my original report. I mentioned that the seller actually gets all of the up front money if and when a buyer decides not to buy the business.
I misspoke when I wrote that as I should have stated that actually the broker gets to keep any up front money if a buyer refuses to buy the business due to any reason and the seller 99% of the time does not receive any of that money.
This is why an experienced broker tries to get those two commitments from the buyer which are once again, a Purchase Price Agreement and a down payment of up front money also known as good faith money which consists of at least $10k or how ever much the broker can squeeze out of the buyer.
Like I mentioned in my first report that 99% of all experienced brokers except for The Veld Group will forget about requiring these two requirements if an experienced buyer explains his reasons why they are unfair and put the buyer at a disadvantage.
The second point that I wanted to expound on is how exactly the seller actually gets taken advantage of when dealing with The Veld Group. First, you need to understand that if the seller is in cahoots with the broker and they both are in agreement to try and defraud a buyer then the seller does not have anything to complain about nor to lose except for their retainer fee which is charged by the broker to employ their services.
When a seller is being dishonest, the seller becomes fair game and I have no sympathy for them. They truly are not deserving of The Veld Group to provide a worthy service which The Veld Group truly does not supply and the seller is truly not worthy of any broker to provide an honest service if the seller is attempting to defraud anyone or everyone!
An honest seller who will not be swayed into allowing The Veld Group to misrepresent their business' financial information has these things to beware of or be on the lookout for:
1. Once The Veld Group is paid their initial fee and accepts the task of representing the seller and assisting the seller in selling their business, the seller must stay on top of the broker by staying in communication with him.
The seller needs to be assured that the broker is truly trying to sell their business and that the broker is not just spending their day looking to recruit more business owners who are looking for a broker to assist them in selling their business. The seller needs to verify that the broker is putting the required amount of time and energy into the sale of their business and that the broker is not just relying on potential buyers to locate your business on their website. The seller should understand how exactly is The Veld Group going to get the word out to the public that your business is for sale and what other tactics The Veld Group uses to promote the sale of your business.
2. The seller should make sure that a clause is written into the contract between the seller and The Veld Group specifying that should the seller become aware of the broker not performing their duties then the seller may terminate their contract with a refund of any/all money needed to be paid up front to retain the broker's services. Remember that I am giving you a general guideline here but any seller should try and accomplish as close to a contract as specified here. Any seller or buyer of a business should hire a competent lawyer to write the agreement between you and The Veld Group! Anything else that the seller can think of which will help them to protect themselves, the seller should have that implemented into their contract with The Veld Group!
3. A seller should always inquire with all potential buyers just how long did the buyer have to wait before the broker sent him a NDA or any other information that the buyer requested. Ask all potential buyers how they rate the broker with regards to the willingness of the broker to provide them the information about the seller's business, just how the buyer became aware of the business and that it was up for sale, and any other important information that you can think of which will help you (the seller) with determining the effectiveness of the broker as well as if you should start looking for another broker to represent you and the selling of your business!
One last point, most brokers and the companies that they work for in the whole industry completely over charge for their services and then they do not do the work that they were paid/hired for. It is The Veld Group thought that lies, cheats, and deceives for monetary gain in which we were trying to inform the public about! Remember that you can use most if not all of the positive information listed here in this report as a guide how to protect yourself and it will work not just with The Veld Group but any broker who assists sellers with selling their businesses. Our recommendation is not to use The Veld Group for any service but to research other brokers who assist sellers with selling your businesses and to hire them.
I am not an attorney but an experienced business man and our group has been buying businesses for over 20 years so you understand that we do have an extensive history with working with brokers. Due to the requirements of
The Veld Group was why we have not dealt with them in the past or until recently and it was that business deal where we learned exactly how they operate and why they are so demanding as they are just crooks playing the odds!!!
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