Most potential for many of the same reasons that sellers use to sell their business. If you are considering selling your company, it is vital to find the right buyer who is as serious in buying it as you are to sell it. If the purchaser is not serious, you’ll never be able to close the deal. That’s why make sure you know enough about the buyer. Here are some important things that you should know about the buyer.
Reasons to Buy a Company
There are many reasons why buyers want to buy a company. Some of the most common reasons include the following:
- Desire to know and use their potential
- Job dissatisfaction
- Early or forced retirement
- Fired, laid-off, being transferred
Buyer’s Profile
One of the first important documents that you should check is buyer’s profile. A serious buyer will provide you with a detailed profile so that you can learn more about them. There are some things that you need to look at in buyer’s profile. These things include the following:
- Check if a buyer is male or female
- If they have enough funding to finance the purchase and where the funds have come from
- Why they want to acquire your business
- Previous experience in the same industry
Traits of a Willing Buyer
Many times you will find a buyer that looks interested in your company, but later on, they will show lack of interest. Bear in mind that buyers who want to get into a business because they want to make money usually are not genuine and realistic buyers. So how do you find out if a buyer is serious to purchase your company? Here are some traits of a willing buyer:
- The desire to own/buy a company
- The urgency and need to acquire a company
- Strong financial resources
- Realistic expectations of what you as a business owner can do for them
- Ability to make their own decisions and For more http://www.turnerbutler.co.uk/buyingbusiness.html
What Information You Should Provide to the Buyer?
There is some important piece of information that you should provide to the buyer. This information includes the following:
- How much money is required to purchase the company?
- What is the yearly increase in sales?
- What is the debt (if any)?
- How much money is the inventory?
- How is your business different/unique/special?
- How much is the inventory?
- What further defines your products or services? Bid work? And repeat business?
- What the new acquirer can do to expand and grow the business?
- What is the profit picture in good and bad times?
- What the ne acquirer can do to add the value?
- Will you train the new owner?
- Will you be stay on with your sold company for a while?
This is the type of information that potential buyer will want you to provide them. This will help your potential buyer make a well-informed decision about buying your company.
