It is up to your business broker to find a serious buyer for your business. No two buyers are the same. No two buyers have the same mindset. They don’t have the same emotional makeup, or approach to business. Just as every person is different, the same holds true for buyers. Buyers purchase businesses for a wide range of reasons. Here are a few areas a serious buyer will want to assess.
An Interest In The Industry
A serious buyer, one that wants to achieve success, will want to understand both the business they are considering buying and the industry as a whole. You will want a buyer who wants to understand the strengths and weaknesses of a business. A serious buyer will want to comprehend the strengths and weaknesses of competitors. They will want to understand potential industry wide problems both now and in the future.
Inquiries About Wages and Salaries
Knowledgeable business people realize that wages and salaries make up a huge percentage of the typical business’s operating cost. A serious buyer will want to understand not just the wages and salaries of employees, but also additional related costs. These costs can include the cost of training new employees, retirement related costs, the rate of employee turnover and more. Smart buyers are looking for stability throughout the business. This includes its employees.
Understand What Is Being Sold
As a business owner, you will want to only deal with buyers who have carefully though through what it means to buy a business. A key aspect of buying a business is to fully understand what is being sold. For example, serious buyers will dive in and understand capital expenditures. They will also examine and evaluate machinery and equipment so that they understand what kinds of equipment might need to be repaired or replaced. Replacing and repairing equipment can mean substantial costs.
Serious buyers will go beyond evaluating the stability of employees and the state of machinery and equipment. They will want to know if there are any environmental concerns. They will check and evaluate the lease, and they will want to inspect the state of all buildings. A serious buyer will want to know who the key clients and key suppliers are and determine if those relationships are stable or if they put the business at long-term risk.
You will want to work with a buyer who is proactive. Quality buyers will be accessing every aspect of a business to determine it’s long-term viability. EBIT Associates can help you find a serious buyer for your business. Contact us today to help get you started down the right path.