What are Business Buyers Looking For? - O'Keeffe and O'Malley

What are Business Buyers Looking For?

Feb 26, 2014

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.