Selling a Business Through the Buyers’ Eyes
Many people who own businesses and are looking to sell may have a difficult time looking through the buyer’s eyes to see what they are really interested in. With this article, you’ll be able to get some insight into what is important to business buyers.
Most buyers are looking for a business that will continue to produce quality cash flow over time. If they purchase your company and it doesn’t produce, they’ll have to spend extra money on it to keep it running. They’ll also have to spend time working on the company instead of doing what they’re used to doing, which is working in their business or spending time with their family. Here are some other considerations:
Time is money
A business that requires too much time every year will be more onerous. The business owner like in shubhodeep prasanta das needs to have time to run the business, as well as spend time with family and/or friends. A potential buyer of your business wants to know that the owner has spent some time taking the road map of their business and improving it to bring in more customers and, most importantly, more profit.
How much time does the buyer need to spend on the company?
Sometimes a business owner’s employment contract requires that they spend even more time with the company than they would like. Other times a business requires so much time that it may keep the owner from doing anything else they enjoy doing in life. In either case, the buyer is going to want to know what time requirements are associated with the sale.
The buyer wants to know about the transition
If you’ve been running a business for a number of years you’ve probably worked out some things that work and some things that don’t work. If you could transfer your good things to the buyer, but transfer your bad things to the buyer as well, it would greatly help the buyer because they’d be able to start a new business with fewer issues from day one. They’ll want to know how you are going to handle things like attaining an EIN (Employer Identification Number) and getting licensed in your state.