WHAT BUYERS LOOK FOR


It's natural for you to be most concerned with your own needs, but it's also important to understand the wants and concerns of buyers.

This article discusses what to look for in buyers. So we might predict buyer reactions and create the best chance of a successful sale.

  1. Provable Books and Records.
    Buyers want proof of the sales and profits that the business has made in the past. Be prepared to prove to the buyer's satisfaction your financial records.
  2. Reasonable Price and Terms.
    Usually, buyers won't even look at a business that is not priced competitively.
  3. Leverage.
    While most small businesses sell with seller financing, we know the financial institutions who may help.
  4. Living Wage.
    Buyers want to know they can make a decent living wage from the business (after debt service).
  5. Furniture, Fixtures & Equipment.
    Buyers will want a complete list of your equipment and will inspect it to insure that everything is in good working order.
  6. Lease.
    Any buyer will want a good lease (whether your existing lease is assigned or a new lease is written).
  7. Training.
    Most buyers have not owned your type of business before and will need two weeks or more training. You may not have to train the "pro" buyer, but the "pro" buyer probably won't pay the price you want either.
  8. Appearance.
    Nice looking business sell first! Buyers deduct large amounts from their offering price for businesses that are in less than top shape. Please keep your business neat, clean and in good repair.
  9. Covenant Not to Compete.
    Buyers are afraid you may go into competition with them and take all their customers. A promise not to compete within reasonable distance for 3 to 5 years is typical. This may also provide tax advantages for both buyer and seller.
  10. A Good Reason for Sale.
    Buyers are always concerned about this. They are afraid you may be selling because of some undisclosed fact which may hurt the business in the future. Buyers must see a logical reason for sale - without it they will assume the worst!
  11. Time is of the Essence.
    Buyers are often looking at more than one business when they make an offer. A buyer's offer can be withdrawn any time until it is accepted and delivered back to the buyer. If you don't respond in a reasonable time, the buyer may lose interest in your business and move on to another.
  12. No Surprises.
    Surprises will scare away any buyer. If we know all the facts up front, almost any problem can be solved or overcome in negotiations. Please be sure that you have told us about any problems, including the following: