For Buyers
What Buyers Look For When They Buy A Business
1.) Buyers always want to know how long the business has been in operation.
A business with a long track record means there are good reasons for that business to be operating. It will be well known in the area, and people will be used patronizing the business or using its services. The longer it has been operation, generally, the better the business. It has proven its worth in the market.
2.) How long the present owner has owned the business.
The longer the present owner has been in business, the more likely he or she has been successful. People don’t stay in business if they are not making money.
3.) Buyers always want to know why you are selling your business.
Buyers are looking for valid reason for selling a business. Retirement, health, divorce, serious life changing events and legitimate career changes are good reason. Short-term ownership, profitability or other business problems are warning to serious buyers.
4.) Why Books and records are important.
Clear and concise financial records are important. How well the company is maintained to a budget and how consistently the budget if followed is very important. There should be two financial programs in place for every business. The internal financial statements that are used to operate the business and the annual tax returns. All items should be explainable and if income re-casting is required, it should be measurable within the statements. If the buyer detects any miss-information credibility is lost and the sale is lost with it. Don’t hide anything from the process because it will only create problems.
If you are planning to buy a successful business, click the following link to fill out your business requirements and we will contact you as soon as possible:
