Entrepreneurs spend years pouring blood, sweat, and tears into building their business.
Most start with nothing but determination and only after 80 hour work weeks, costly trial and error, and multiple missed holidays and family events do they look up and realize their business provided more than a financial opportunity it also provided a purpose.
So when it comes to considering selling your business and saying, “Goodbye” to that purpose, many entrepreneurs end up expecting completely wrong questions from prospective buyers and never truly being prepared for a profitable and successful exit.
Because hundreds of students and clients have come to me with this same scenario, I decided to spend a few minutes outlining EXACTLY what prospective buyers may ask and what they’re looking for.
Top 10 Questions a Potential Buyer May Ask About Your Business
1. Who makes your business’ major decisions when you’re not around?
2. Who deals with customers and suppliers?
3. Who are the key employees and why don’t they want to acquire your business?
4. Will the business continue to grow without your influence and/or presence in the business?
5. Are key relationships tied to you as the owner or to a key employee?
6. What key employees will stay on through the transaction?
7. Do you currently have a management team in place?
8. How long can you leave your business without issues occurring or revenue lost?
9. How has the business evolved since you first started it and what opportunities exist in the future?
10. What is your day-to-day role in the company?
The Most Important Thing to Remember?
When considering selling your business and preparing to talk with potential buyers, it’s important to remember that although this is likely an emotional decision for you, it’s a logical decision for them.
They want clear, honest answers to help them understand how the change in ownership will affect the business, employees, and customers. After all, YOU may be thinking in terms of purpose, but they’re thinking in terms of minimizing the downside and risk (should they choose to move forward).
How Do I Know?
Because my business partner and I have sold over 100 million dollars of businesses and helped tons of entrepreneurs plan their successful and profitable exit.
I’d love to know if you are prepare to answer questions from a potential buyers? An unsolicited offer can arrive at any time. Are you ready?