**New Video Alert!
Most business buyers make the same costly mistakes…
They waste time on bad deals, get ignored by brokers, and sometimes overpay without realizing it.
In this video, I break down 4 practical tools that can help you avoid those traps and move forward with confidence.
Watch the video here: https://youtu.be/wZ5rpWtHabo
Cheers
See you over on YouTube
David C Barnett
It’s a fair question: if real estate agents sometimes offer commission rebates, can a business buyer ask a broker for part of their commission?
In most cases, the answer is no—and here’s why.
Real estate and business brokerage may look similar, but they operate very differently.
A business broker typically handles:
In real estate, these roles are often split across multiple professionals. In business sales, the broker does all three—often over months or even years.
Business brokers usually rely on earning the full commission to justify the time and effort invested in each deal.
Unlike real estate:
Because of this, brokers are far less likely to share or rebate their commission to buyers.
If a commission reduction occurs, it usually comes from the seller side, not the buyer.
This often happens when:
Buyers typically don’t have leverage to request part of the commission directly.
Instead of asking for a rebate, buyers can sometimes benefit from creative deal structuring.
In certain situations, a broker may:
This approach aligns everyone’s interests without directly cutting the broker’s compensation.
Business brokerage is a relationship-driven, high-effort process with fewer completed transactions than real estate.
Because of this, compensation structures are less flexible—and buyers need to adjust expectations accordingly.
If you want to learn more about creative private investments, check out my book Invest Local — available on Amazon or as a PDF from DCBBooklist.com
Business brokers rarely share commissions with buyers because of the complexity and workload involved in each deal. Instead, buyers should focus on creative deal structures that help bridge gaps without reducing broker incentives.
👉 Want deeper dives like this? Join my email list at DavidCBarnettList.com for early access to videos, insights, and 7 free bonus gifts.
**New Video Alert!
Are you an American thinking about buying a business in Canada? Or a Canadian wondering how the BDC compares to the SBA?
In this video, I break down:
Whether Americans can legally buy Canadian businesses
*How BDC financing actually works (and why it’s NOT the SBA)
*The biggest cross-border tax trap most buyers completely miss
*Why a great deal can quickly become a bad one after taxes
If you're considering international business acquisition, this is a must-watch before making an offer.
Watch the video here: https://youtu.be/gq9dM_bsvz4
Cheers
See you over on YouTube
David C Barnett
Many business owners are surprised to learn they won’t receive all their money upfront when selling their business. In small business transactions, seller financing—also known as a vendor take-back (VTB) note—is common and often necessary.
But beyond helping close a deal, a seller note can serve a much bigger purpose: ongoing income.
Most buyers don’t have enough cash to purchase a business outright. Banks also prefer sellers to have “skin in the game,” which makes financing more accessible.
Without seller financing:
Fewer qualified buyers exist
Deals take longer to close
Final sale prices often decline
In short, offering financing increases the chances of a successful exit.
Instead of viewing a seller note as a compromise, it should be seen as an investment in the buyer’s success.
This means evaluating:
The buyer’s experience and background
Their plan to operate the business
Cash flow projections and debt capacity
Approaching the deal this way helps reduce risk and improves the likelihood of being paid consistently.
One common mistake sellers make is demanding fast repayment terms.
While it may seem safer, aggressive timelines can:
Strain the business’s cash flow
Increase the risk of default
Jeopardize the entire deal
A well-structured note allows the buyer enough breathing room to operate successfully—protecting your investment.
Seller financing can become a predictable income stream, often used as part of a retirement plan.
Compared to traditional savings accounts with minimal returns, seller notes typically offer significantly higher interest rates.
This creates an opportunity to:
Generate steady monthly income
Preserve long-term investments
Maintain financial flexibility post-sale
Smart sellers don’t “set and forget” their note.
They stay engaged by:
Monitoring financial performance
Reviewing reports regularly
Watching for early warning signs
Because sellers know the business better than anyone, they are often in the best position to protect their investment.
Seller financing isn’t just a tool to complete a transaction—it’s a strategic way to maximize value and create income.
By thinking like an investor and structuring the deal properly, sellers can turn part of the sale into a long-term financial asset.
If you want to learn more about creative private investments, check out my book Invest Local — available on Amazon or as a PDF from DCBBooklist.com
Seller financing can transform a business sale into a reliable income stream when structured properly. By evaluating the buyer and prioritizing sustainable cash flow, sellers can reduce risk while improving deal success.
👉 Want deeper dives like this? Join my email list at DavidCBarnettList.com for early access to videos, insights, and 7 free bonus gifts.
