What the Ideal Buyer Expects From the Seller

business-740074_640Step into your potential buyer’s shoes for a moment. Buyers expect the same things YOU would expect if you were them.

They expect:

Reasonable price and terms.  When a business is for sale, a reasonable price at fair market value is determined by other businesses in a similar industry to the one available for sale. The terms, such as seller or third-party financing, can determine the desirability of the business. The return on investment (ROI) establishes if the price and terms are reasonable, based on the amount of time it will take to recoup the investment.

Provable books and records.  In purchasing a business, every buyer expects to verify the information given to them by the seller and the seller’s broker. This is done during the due diligence period, after a written contract has been agreed on by both the buyer and seller.

Financial leverage.  A down payment and suitable loan maximizes the investment level of your buyer’s capital. Peterson Acquisitions can help both the buyer and seller come to terms on financing.  That is more desirable than the buyers having to come up with a lender and terms on their own.

Buyers want to know about things like discretionary earnings, how much they can expect to pocket after paying their expenses, They will also want to know about everything–furniture, fixtures, equipment, etc.–that come with the purchase price.

Other things buyers need or want to know:

  • Will there be adequate training after acquisition?
  • Is the property lease transferable?
  • Why is the business for sale?
  • Does the business have curb appeal? Is it attractive, inside and out?
  • Is the seller willing to sign a non-compete agreement?

An appointment with Peterson Acquisitions can help you put the most positive light on your business and position it for a nice sale.