Buyer registration
Let's Talk Buyer Registrations
Buyer registration is one of the most frustrating, time-consuming steps in business brokerage, for brokers and buyers alike. Here's why it matters, why the old way drives serious buyers away, and how online registration lets a buyer register and sign in about a minute while protecting your seller and your commission.
Quick answer
Buyer registration is the step where a prospective buyer signs a confidentiality agreement (NDA) and registers with the broker before receiving confidential information about a business for sale. It protects the seller's confidentiality and the broker's commission. Done the old way, with printing, signing, scanning, faxing and emailing, it can take days and lose serious buyers. With Vertica CRM, buyers can register and digitally sign their agreement directly from the broker's website in about a minute. The signed agreement is saved to the buyer's record in the CRM, approval can be automatic or manual, and approved buyers can access the information they need right away. Because every brokerage has its own methodology, Vertica CRM's automation workflows can be configured for one NDA or one per listing, seller-specific clauses, several documents at once, NDAs that expire, and buyers who bring their own NDA.
One of the most frustrating and time-consuming procedures for any business broker is buyer registration.
Picture it. A buyer finds one of your listings on a Friday evening. He's serious. He has the money, the experience and the motivation. All he needs to do is sign your registration agreement, and you can send him the information he wants.
But what if he doesn't have a printer at home? What if he doesn't have access to a fax machine, or doesn't check his email often? What if he works long shifts, or simply isn't comfortable with computers? By the time the signed agreement comes back, if it comes back at all, he may have found another business.
Some of those obstacles are excuses, of course. But you never know who is a serious buyer and who isn't. Your job is to make registration as easy as possible for every buyer, while protecting your seller's confidentiality and your commission.
Make it easy for serious buyers to say yes, and hard for anyone to see what they shouldn't.
Why buyer registration matters
Buyer registration does three important jobs at once:
- It protects your seller. Before a buyer learns the name of the business or sees its financials, they agree in writing to keep that information confidential.
- It protects your commission. A dated registration shows that you introduced the buyer to the business, which matters if the buyer later tries to go around you or another broker claims the buyer.
- It tells you who you're dealing with. The registration form is your first chance to learn about the buyer: their background, their financial capability and what kind of business they're looking for.
That's why skipping or rushing registration isn't an option. The goal is to make it fast and simple without losing any of that protection. (For the different kinds of agreements and registration options, see versatile NDA and buyer registration options.)
Why the old way frustrates everyone
The traditional registration process asks a lot of the buyer: download the agreement, print it, sign it, scan or fax it back, and wait. Then the broker has to check it, file it, record it and send the information by hand. Every step is a chance for the buyer to lose interest, and for the broker to lose a day.
Speed matters more than most brokers realize. In a study published in Harvard Business Review, The Short Life of Online Sales Leads, firms that contacted a potential customer within an hour of an inquiry were nearly seven times as likely to qualify the lead as those that waited even an hour longer. A buyer who has to wait days to register is a buyer who's still shopping.
How online buyer registration works in Vertica CRM
Vertica CRM replaces the paper chase with a simple, secure online process. Within about a minute, a buyer can go from your listing page to a signed agreement:
- The buyer clicks register from a listing on your website. The listing they were viewing is selected for them.
- They fill in a short registration form with their contact details and background.
- The NDA is personalized automatically. The buyer's name, the listing, the broker and the date are filled in from the CRM, so every agreement is complete and correct.
- The buyer signs digitally, right on your website, from a computer, tablet or phone. No printer, scanner or fax machine needed.
- The signed agreement is saved to the buyer's record in the CRM, permanently, with the date and time.
- The buyer is approved, automatically or by you, depending on how you've set it up.
- Approved buyers get the information they need and can return to their portfolio on your website to see the listings and documents they've been given access to.
For you, that means getting information into buyers' hands faster, with a complete record of every registration, and no paperwork to chase.
Automatic or manual approval?
Vertica CRM lets you choose whether registrations are approved automatically or reviewed by a broker first. The right choice depends on your firm and the kind of listings you handle:
| Automatic approval | Manual approval | |
|---|---|---|
| How it works | Buyers who register and sign get access right away | A broker reviews each registration before granting access |
| Best for | Main street listings where speed matters most | High-value or highly sensitive engagements |
| Advantage | Buyers get information within minutes, even at night or on weekends | You decide exactly who sees what, case by case |
| Trade-off | Less screening before information is shared | Buyers wait until a broker reviews them |
Either way, every registration and every release of information is recorded. (More on controlling what each buyer sees: buyer approval and data rooms.)
Every brokerage has its own registration methodology
There's no single right way to register buyers. Every business brokerage has its own methodology, shaped by its market, its listings, its sellers and years of experience. Here are just a few of the variations we see:
- One NDA or one per listing. Some firms have buyers sign one NDA that covers every listing. Others require a separate NDA for each listing.
- Seller-specific clauses. Sometimes a seller wants a specific clause added to the NDA their buyers sign, such as a non-solicitation of employees or a restriction on contacting suppliers.
- Several documents at once. Some firms require buyers to sign or submit several documents at the same time, such as a buyer profile, a proof of funds document and the NDA.
- A new NDA for each additional listing. Even when a buyer is fully registered and already logged into the data room, they may need to sign an NDA for a new listing before they can see it.
- NDAs that expire. Some firms limit an NDA to a set period, such as three months, after which the buyer must sign a new one.
- Buyers who bring their own NDA. Private equity groups often want to use their own NDA, which then needs to be reviewed and approved by both the broker and the seller.
Vertica CRM can accommodate all of these options, and many more, with its powerful automation workflows. Every client is unique, so we configure the registration process around your methodology instead of asking you to change it. When a private equity group sends its own NDA, Vertica Sign can route it to the broker and the seller for approval and signature, with a record of every step.
| Your methodology | Example | How Vertica CRM handles it |
|---|---|---|
| One NDA for all listings | A buyer signs once and can request any listing | The signed NDA covers every listing the buyer is approved for |
| A separate NDA per listing | Each listing has its own agreement | A listing-specific NDA is sent for each listing the buyer requests |
| Seller-specific clauses | A seller adds a non-solicitation clause | That listing's NDA includes the seller's clause automatically |
| Several documents at once | Buyer profile, proof of funds and NDA | All required documents are requested in one registration |
| New NDA for an additional listing | A registered buyer wants to see another business | The buyer signs the new listing's NDA before gaining access |
| NDAs that expire | Agreements valid for three months | Workflows prompt the buyer to sign a new NDA when the old one expires |
| The buyer's own NDA | A private equity group sends its own agreement | Vertica Sign routes it to the broker and seller for approval and signature |
What brokers gain
- Time back. No more chasing faxes, scanning signatures or filing paper. Your team can focus on getting more listings and earning more commissions.
- Faster responses. Buyers get information while they're still interested, not days later.
- A permanent record. Every registration is dated and saved, protecting your commission if questions ever arise about who introduced a buyer. (How Business Brokers CRM thinks out of the box.)
- Better buyer data. Registration details go straight into the CRM, ready for matching buyers to future listings.
- A professional first impression. Buyers see a modern, secure process that reflects well on your firm.
Tips for a registration process serious buyers will finish
- Keep the form short. Ask for what you need to qualify the buyer, and save the rest for later.
- Make it work on a phone. Many buyers find listings on their phones, so they should be able to register there too.
- Personalize the agreement automatically. Pre-filled names, listings and dates prevent mistakes and save time.
- Ask a few qualifying questions. Experience, available cash or financing, and timeline tell you who's serious.
- Respond quickly. Whether approval is automatic or manual, get back to buyers the same day.
- Offer help. For buyers who aren't comfortable with computers, a quick phone call to walk them through registration can win a buyer you'd otherwise lose.
Built by brokers who lived the frustration
Vertica CRM was founded by business brokers, and built on research with hundreds of brokerage firms. We've all spent hours chasing registration agreements, so we designed a flexible, easy and even fun-to-use platform that takes that frustration away. (Our story: what is the key to Vertica CRM's success?)
What's changed since 2016
Online registration has only become more powerful since this article was first written:
- Registration starts from any inquiry. With lead parsing, when a buyer inquires on BizBuySell or another marketplace, the CRM creates their record and emails them a link to a registration form already filled in with what they've told you. If they're already registered, they receive their login to the data room instead.
- Brokers get a co-brokerage agreement. When the person inquiring is another broker, Vertica CRM can send a co-brokerage agreement instead of an NDA.
- A data room for approved buyers. Once approved, buyers can access the confidential documents you choose in the data room, and every release is recorded.
- Document signing for everything else. Vertica Sign lets you send listing agreements and other documents for signature from a template in one click. (A DocuSign alternative at half the cost.)
See buyer registration in action
Watch a buyer go from your listing page to a signed NDA in about a minute. Contact us for a free demonstration.
Schedule a Demo Questions? Call our office at +1 212 381 4994.Frequently asked questions
What is buyer registration in business brokerage?
Buyer registration is the step where a prospective buyer signs a confidentiality agreement (NDA) and registers with the broker before receiving confidential information about a business for sale, such as its name and financials. It protects the seller's confidentiality and documents that the broker introduced the buyer.
Why is buyer registration important for business brokers?
It protects the seller by requiring confidentiality, protects the broker's commission with a dated record of who introduced the buyer, and gives the broker information to qualify the buyer and match them to listings.
Can buyers sign an NDA online?
Yes. With Vertica CRM, buyers can register and digitally sign their confidentiality agreement directly from the broker's website, from a computer, tablet or phone, in about a minute. The signed agreement is saved to the buyer's record in the CRM.
Should buyer approval be automatic or manual?
Automatic approval gives buyers access to information immediately after they register and sign, which suits listings where speed matters. Manual approval lets a broker review each buyer first, which suits high-value or highly sensitive engagements. Vertica CRM supports both.
Can buyers sign one NDA for all listings, or one per listing?
Either. Every brokerage has its own methodology. Vertica CRM can be configured so a buyer signs one NDA covering all listings, or a separate NDA for each listing, including a new NDA when an already registered buyer asks to see an additional listing.
Can an NDA include a clause requested by the seller?
Yes. When a seller wants a specific clause in the NDA their buyers sign, such as a non-solicitation of employees, Vertica CRM can include it in that listing's agreement automatically.
Can a buyer use their own NDA?
Yes. Private equity groups often want to use their own NDA. With Vertica Sign, the buyer's NDA can be routed to the broker and the seller for review, approval and signature, with a record of each step.
Can an NDA expire after a set period?
Yes. Some brokerages limit an NDA to a set period, such as three months. Vertica CRM's automation workflows can prompt the buyer to sign a new NDA when the old one expires.
How long does online buyer registration take?
With Vertica CRM, a buyer can typically register and sign their agreement in about a minute, compared with days for the traditional print, sign, scan and fax process.
What happens when a buyer inquires on BizBuySell?
With Vertica CRM's lead parsing, the inquiry creates a contact record and the buyer is emailed a link to a pre-filled registration form. Buyers who are already registered receive their data room login instead, and other brokers can be sent a co-brokerage agreement.