When selling your business it is important to know what questions business buyers often ask. The most common question asked by a buyer is, “Why is the business for sale?” The answer to this question may make or break a sale. The potential buyer may assume the worst if you give them a vague answer.
It’s fine if your answer to this question is you are “burned out” or want to retire. Buyers will most likely accept this reason if you have owned the business for 10 or more years. The buyer will probably continue pursuing the deal.
If you have an illness, be open about the problem. Not providing an completely honest answer is the worst thing a seller can do. Buyers will see right through the given reason for sale and walk away. Be up front and explain why, even if you really are tired of running your own business. Honesty is always the best policy.
Hiring a professional business broker is a smart move. Experienced business brokers have been through many transactions. They can help a seller deal with the reason for the sale as well as other questions buyers may have.
Questions Business Buyers Often Ask
- How are businesses priced?
- What happens if I find a business I want to buy?
- What does it take to be successful?
- Why should I buy an existing business rather than start one myself?
- What should I look for?
- Do I need outside advisors?
Specific Questions Buyers Ask
- Will the owner help me learn the business?
- How long has the business been established?
- Are the books and records readily available?
- How long has the present owner owned the business?
- How much money is the business making?
These are just a few questions that buyers ask. The team at EBIT can help sellers deal with these questions and others that will arise. We can help you prepare honest and useful answers to any questions a potential buyer may have.