Five Points to Consider about the Serious Buyer

The serious buyer is important to understand when you’re selling your business. You want to be able to get into their head and tell them exactly what they want to know about your business to encourage them to make the big purchase. To better understand the serious buyer, check out the following five points.

1. Industry interest

Serious buyers have a serious knowledge of the industry. To give them the information they’re seeking, skip the basic industry information and move straight to your company’s influence on the industry. Share details about your existing customers, potential customers, business competitors, strengths, and weakness as a company in your specific industry.

2. Discretionary costs

Buyers pay special attention to discretionary costs. As a seller, you are encouraged to reduce your discretionary costs when it comes to advertising, public relations, and research and development to help your business appear more attractive to buyers.

3. Wage and salary inquiries

The wages and salaries you pay your employees can explain turnover rates or employee loyalty. Serious buyers will examine these wages to predict the stability of your employees.

4. Cash flow and inventory questions

A serious buyer will pay attention to cash flow. This means it is important to keep a record of inventory, expenses, and profits. Serious buyers will want to know the specific details of your cash flow before purchasing the business.

5. Capital expenditure questions

If your business has machinery or major equipment, buyers will want proof of inspections. Buyers want to avoid expensive repair costs at all costs, so keep paperwork regarding machinery and equipment purchases and maintenance.

These five points are just some of the things to keep in mind when working with serious buyers. For even more help selling your business, consider the services of Hallmark Business Brokers. Contact our office at 941-445-4726 to speak with a member of our team to learn more about our business selling services. We hope to work with you soon!

Florida Management Consultant | Sarasota Business Broker