Many business owners will build a business from scratch, grow it, and then the time comes to move on.
Time to find an appropriate buyer…
You will have invested time in preparing a valuation and taking all the steps to get your business buyer ready, but how do you find out if the buyer is right?
The Questions…
In the same way that a potential buyer will research you and your business, you are welcome to ask them questions to find who they are, and what they plan to do with the business you have built up. Doing this will help you to understand if you are dealing with a time waster or a serious business person keen to get things right.
What Are Their Plans?
After investing blood, sweat and probably some tears in building a strong marketable business, you want to be sure that it will be left in good hands. Key considerations should be;
- Are they looking to keep on your staff?
- Are they looking to maintain the services you offer and will this impact your clients?
- Do they have any industry experience
Why is it important to ascertain if they have industry experience? If you are required to stay and oversee a handover, you want to know exactly what you are letting yourself in for!
How Will They Fund The Purchase?
A serious buyer will have already considered their financial options and funding requirements. If a potential buyer is unable to answer the question, they may not even be a serious buyer. If they are serious, the need to source funding could slow down the process. So consider whether you are keen to sell at any cost or if you are happy to play the long game and perhaps negotiate to broker a deal that suits all parties?
Why Are They Interested In This Business?
You’re looking for the specifics here,a buyer who can answer you and back up their answers , similarly to an interviewee, is a buyer who has intention behind the enquiry. A prepared buyer will have plans ready and should be able to give you a comprehensive answer to this question.
Trust Your Gut
If something is telling you that the potential buyer is not right, trust your feeling. You’ve listened to it while building your business, so why stop now, at this crucial moment?
How Can We Help?
Of course there is much more to this process than the questions in this blog, but they are a starter, considerations you should make when you get that email notifying you of an interested party!
At The Avanti Group (UK) Ltd, we can help you to prepare for selling and buying business. Did you know that alongside our day to day accounts and tax we also offer a business valuation service? If you are considering buying or selling, give us a call (08000) 388 799 to see how we can help you get your finances in order for your next steps!