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Sale of my business

Klemms sold my business recently. It was handled by John Zhang . He was extremely professional and the whole process was fantastic. I have dealt with klemms for 15 years and have always found them by far the best business agents in the land !

Submitted by Chapel Bakery Cafe Pty Ltd on Friday, Jun 07, 2019

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Awful - avoid at all costs

I unfortunately chose Klemms to sell my business very recently. Not a single part of my experience with Klemms was positive, even though they did actually sell my business. Below is a summary of my experience with them: - They failed to prepare anything even vaguely resembling a business profile. A good broker will take the time to prepare a detailed profile of your business. Klemms simply send your prospective purchasers all of your financial data without any supporting information. - They listed my business with drastically inaccurate data. The first THREE prospective purchasers that I met with had the impression that my business was massively profitable. This couldn't have been further from the truth. Imagine sitting down with prospective purchasers and explaining to them that what they had been told was not at all accurate. - They promised to show me the advertisements before publishing them. This never happened obviously. Even the second time when they listed the business with the correct data. But by this point the damage had already been done. We eventually had a buyer make an offer on the business. It was a low ball offer that was well below the asking price. And it was at this point that Klemms seemed to stop trying to sell my business and spent most of their time trying to convince me to take the low ball offer, knowing full well that by accepting the offer I would be putting myself in a very difficult financial position. If I was in a position to take more time with the sale then I absolutely would have waited for another purchaser to come along. Sadly, however, I had to accept the offer given that all the leads had dried up and Klemms had seemingly lost interest in finding new leads. Once we had negotiated the formal offer, Klemms hit me with their big news. Even though they had achieved a sale price substantially below the price that I was seeking, they would be increasing the percentage of their commission. Klemms normally take a commission of 8%, which I personally believe greatly exceeds the value of their "service". But with the lower price achieved for the sale of my business, they wanted to increase their commission to 10%. This is pure insanity. They didn't achieve my asking price, but wanted to take a larger cut for themselves. Naturally, I wrote a letter of complaint. And even though the letter went ignored for weeks on end, they eventually reduced their commission by a small margin. Which was only a small win on my part given that they still made way too much from the sale of my business. A good broker will work closely with the vendor and purchaser during the lead up to settlement to ensure that both parties are aware of everything they need to complete and to make sure settlement proceeds as efficiently and quickly as possible. Klemms don't do this. They provide only the bare minimum of support. - Klemms seemingly started working in favour of the purchaser during settlement. Even though I was paying their commission, they advised me to go against legal advice and proceed with settlement in a manner that worked more in favour of the purchaser than myself. I was utterly stunned at this behaviour, why on earth would a broker that I am paying advise me to do something that places me a significant risk? - I literally did the bulk of the negotiations with the purchaser and legal teams myself. Klemms did virtually nothing throughout settlement. I never expected that I would be in a position where I would have to do these negotiations myself. It left me wondering how Klemms were earning their commission, but we already know that they had no plan to really earn this payment. Klemms haven't done any follow up at all since settlement. Not even to check that the last loose ends that needed to be completed had been finalised. There wasn't a single thank you, not a single question about my experience with them. All that I received was a single text message to say "congratulations". Overall, I strongly recommend you avoid Klemms Business Brokers.

Submitted by Ian W on Wednesday, Jan 16, 2019

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