What Sellers & Buyers Look For
The Seller is looking for:
| Top price for the business. |
| The most cash at closing. |
| To have the company & its employees prosper. |
|
The Buyer is looking for value:
| To earn a living. |
| To retire the debt. |
| To earn a return on the cash investment. |
| To grow the company without additional debt. |
| To provide for retirement when the time comes. |
|
What A Buyer Looks At to determine value:
| Historical Earnings |
Terms of the Sale |
| Depth of Management |
Employee Stability |
| Diversification |
Competition |
| Business Type |
Location & Facilities |
| Growth Prospects for the Business & Industry |
|
The value of a business to a buyer depends on the needs and perspective of the buyer. This will be different for every buyer. Finding The Right Buyer for Your Business is more than finding someone with the money that likes your business. We interview many buyers, sometimes fifty or more before we bring you a qualified person to talk to.
Buyers will expect a business to have sufficient cash flow to:
| Pay Debt Service |
| Pay the Owner/Manager a Salary |
| Yield a Return Income on their Down Payment |
| Leave a Safety Cushion for Contingencies |
|
Buyers will expect a business to have:
| Up-to-date Financials, Inventory and Tax Records |
| A Presentable Work Place |
| Reliable Personnel |
|
If your business can meet these criteria, most buyers will consider it a viable business opportunity.
