The Buyer Meeting

A successful buyer-seller meeting is very important to a business sale. It gives the buyer a chance to get more comfortable with you and the business; and it gives you a chance to check out the buyer.

To have the best meeting:

·        Meet a prospective buyer with an SBR associate present.

·        Discuss the good points of your business and its potential.

·        Explain the operation of your business and concentrate on its unique features.

·        Allow the buyer to ask questions. They usually have several.

·        Be sure to explain your reason for sale in a positive manner.

·        Price, terms and brokerage fees shouldn’t be discussed. Negotiations could be damaged.

What buyers look for

It’s natural for you to be most concerned with your own needs, but it’s also important to understand the wants and concerns of buyers. This allow us to predict their reactions and create the best chance of a successful sale.

1. Provable Books and Records. Buyers want track records, proof of the sales and profits that the business has made in the past.
2. Reasonable Price and Terms.  Usually, buyers won’t even look at a business that is not priced competitively, too high or too low.
3. Leverage. Most businesses are sold with seller financing.
4. Living Wage. Buyers want to know they can make a decent living wage from the business (after debt service).
5. Furniture, Fixture, Equipment and Vehicles. A complete list of all assets will be needed and everything should in working condition.
6. Lease. Any buyers will want a good lease (whether your existing lease is assigned or a new lease is written). Terms and length of the tenancy must be pre-arranged.
7. Training. Most buyers have not owned your type of business before and will need training. Be prepared to train it is customary and usually required.
8. Appearance. Nice looking businesses sell first! Have necessary repairs done prior to showing and keep the business neat, clean and organized.
9. Covenant not to Compete. Buyers are afraid you may go into competition with them and take their customers. A promise not to compete with an appropriate distance and time is normal for many businesses.
10. A Good Reason for Sale. Buyers are always concerned about this. They are afraid you may be selling because of some undisclosed fact, which may hurt the business in the future. Buyers must see a logical reason for sale – without it they will assume the worst!
11. No last minute surprises. Surprises will scar away any buyer. If we to know all the facts up front, almost any problem can be solved or overcome in negotiations.
    
    Please be sure that you have told us all about your business, including the following: 

-   Are you behind in any tax payment?

-   Are there any problems with the landlord or lease?

-   Are there any loans against the business?

-   Are there equipment leases?

-   Are you in compliance with zoning, health other regulations?