What are Business Buyers Looking For?

This checklist can help you sell the future to a potential buyer:

• Strong management, willing to remain
• Little or no dependence on owner for future success
• Diverse customer base
• Strong operating margins
• Proprietary software, services, products
• Differentiation in your marketplace
• Manageable business risk
• Sustainable financial performance

Have a good answer for the “Why are you selling your business?” question. Be excited about whatever your next step is. Absent a good, enthusiastic answer to that question, a buyer may think you are not fully committed and walk away.

Reasons for selling a business are varied and personal to each individual. Some of the most common reasons clients give for selling a business are:

• Economic climate is right
• Business is at a high value and is in a good situation to market
• Desire to retire
• Desire to embark on something new
• Divorce
• To diversify one’s net worth
• Death
• To eliminate business risks
• Need for growth capital

Some people just decide that owning a business is not right for them. Whatever your reason, be prepared to discuss it with a potential buyer and demonstrate your enthusiasm for your next undertaking.