Finding a trustworthy business broker can be difficult, but at Private Practice Transitions, we always take ethical obligations to our clients seriously. Below, we’ll explain a few of the obligations every broker must have to provide quality service and insight to clients.
Not Making False or Exaggerated Claims
Honesty is at the core of every ethical obligation for brokers. One of the core obligations that brokers have to their clients is not to make false or exaggerated claims about themselves, their firms, or the competition.
Part of being a broker is selling yourself and your firm to the client about why you’re specially equipped to handle the job and satisfy the customer. But that doesn’t mean brokers have free reign to be untruthful about what they can do. If a business broker is making outrageous promises and claims that are vastly different from what competitors can offer, they’re likely not being honest.
Tailoring the Approach to the Client
Business brokers work with all kinds of clients, businesses, and people, but they always have an ethical obligation not to use a one-size-fits-all approach. While the basics of business brokering may be the same regardless of industry, every client is unique and has different needs.
Every client deserves a broker that tailors their approach with consideration to their client’s needs, preferences, and circumstances. A client hires a broker to help them navigate a specific situation, not to help them the same way they helped another client in a completely different industry.
Not Withholding Information
Information is a common area of ethical breaches of brokers to clients. Withholding information can take various forms. The broker may not offer a sufficient explanation of the terms of an agreement so that the client is more likely to accept, or the broker may provide a half-truth that carefully omits information.
The broker must always keep their client as well-informed about the situation, market, or any agreement as possible. Withholding information is not only an ethical breach but could also be a legal breach of contract.
Being Realistic About Market Conditions
A common source of half-truths from business brokers relates to current market conditions. Clients who hire a broker are often not as informed about market conditions, and brokers can take advantage of this by simply telling their clients what they want to hear.
But while it may be easier to give a client positive news, it’s a breach of trust and ethics to make false statements regarding market conditions. Brokers must be specific and clear about the market and what it means for their clients, even if doing so means jeopardizing the sale of a business.
Conclusion
If you’re looking for a business broker that takes ethics and their duty to their clients seriously, look no further than Private Practice Transitions. Interested buyers can find physical therapy practices for sale and other practices, and sellers can work with a broker on our team who will help them find a buyer for their practice. Contact our brokers at Private Practice Transition for help buying or selling private practices today.
