When it comes time to sell your business, you want to be sure you’re selling to the best buyer possible. There are a lot of excellent buyers out there that are the right fit for your business, but some buyers may be less than ideal. Be aware of these buyer warning signs:
The first red flag to look for when working with a buyer is their communication skills. An ideal buyer will communicate with professionalism, while a potentially problematic buyer will have communication issues. If a company reaches out to you expressing interest in your business, you should be talking with the president or CEO of that company. If a company’s actual decision-makers are not involved in the negotiation process, that is a red flag.
As you negotiate with a buyer, you need to discuss finances. If a buyer is not comfortable talking about their finances or they do not disclose financial statements, this buyer is not the proper fit for your business. Without financial statements, you have no way of knowing if a buyer is actually equipped to purchase your business.
Another thing to look for when working with a buyer is their experience. Whether you’re working with an individual or a company, you want to know if they’re experienced in the industry of your business. Does the buyer have knowledge of the market? Are they familiar with the product or service your company supplies? Have they owned a business in this industry before? These are all questions to ask a potential buyer. You also want to know if they have purchased a business before. While a first-time buyer can be a good fit for your business, you want to make sure the buyer knows what they’re getting into.
Even though you’re selling your business, you still want it to go into the right hands. You want to get the money for your company that you deserve and you want to see your business thrive after it is sold. Working with buyers can be stressful, overwhelming, and confusing, but Hallmark Business Brokers is here to help. We’re a different kind of business broker. We work with you to make the buying and selling process as hassle-free as possible. Our goal is to help you get the most money possible for your company, while also having a simple and stress-free experience in the process. To learn more about our services, give us a call at 941-445-4726.