10 Jan Selling Your Business: Signs to Avoid a Potential Buyer
As a business owner, it is imperative that you and your business broker use discernment to determine if a potential buyer is the right person or if it would be a total catastrophe to proceed with transacting with this individual. It is not an easy task when trying to find the correct buyer. Deals fall through the majority of the time in business brokerage, and these failed deals consist of both buyers and sellers wasting time, effort, and, worst of all, money. Since the goal of selling your business is to maximize your profit, there is an incentive to avoid the mishappening of bad deals. In this post, we will explore different signs that are a surefire way of determining if your potential buyer is not the best candidate to purchase your business.
If you receive little to zero communication from a potential buyer, this is a sure sign that there is a lack of seriousness and commitment in regard to purchasing your business. If someone truly has a desire to purchase your business with the intent on maintaining its success, that person will be sure to at the very least let you know about it. Someone who appears flippant and ambivalent is not someone who will dedicate themselves to actually purchasing your business and run it properly. If you find that your potential buyer exhibits the behavior outline above, then you can be fairly certain that this person is not the right buyer and move on.
Another obvious sign that the potential buyer is not serious is if they delegate communication to someone else, be it an employee or business partner. Anyone who is sincerely dedicating themselves to such a major transaction will make it clear to the seller in person. If you can’t meet with the buyer directly, how can you ascertain if they are the right candidate? You must meet with the buyer as this is the only way to determine his true intentions when buying your business.
Selling a business is a major transaction that requires complete, total transparency. The prospective buyer needs to be completely honest and not fail to provide key details regarding their financial capabilities and liabilities. If they are not able to be this open and genuine, then this is a definitive red flag that the sale is not a good idea.
Because of the lengths that one must go through in order to determine if they have found the right buyer, it is best to have a business broker with experience that can help you navigate this process. Contact Broker Matcher today when you’re ready to sell!