How to know A Prospective Buyer Is Serious to Buy Your Business?

Selling a Business is a serious business, as a reason it is of utmost important to understand how serious the prospective buyer is when inquiring into a business opportunity for sale.

So, how does a seller find out if a buyer is serious or a time-waster?

Buyer

Five Ways To Know Whether Prospective Buyer Is Serious to Buy Your Business or Not.

A Serious Buyer will- 

tickmarkKnow what he/she wants

A serious Buyer will know the type of business he/she wants to acquire. First off, it should match their skills and experiences. The buyer will also have some realistic expectations on the location, the investment budget and the size of the company he/ she is looking to invest into.

tickmarkNot waste time

A serious Buyer targets businesses, does research on the business, and is ready to make contact, set up appointments and visit these companies. They meet with potential financial partners. They discuss with the seller or broker important considerations. They focus on businesses that are suitable for their background.

tickmarkBe “Transparent” to the seller

A serious Buyer is always ready to disclose his/ her identity (profile and background) to the seller. The buyer needs to reveal his interests and the reasons why he/ she wants to get into this business. The buyer emphasise his/her understanding of the industry and  the qualification they have to operate a similar business. This will build an initial trust as the transaction proceeds to advanced stages.

tickmarkHave resources available to buy a business

A serious Buyer will have sorted the financing to fund the purchase of the business. A ready proof such as an income statement, banking references, and borrowing capacity should be in place. A serious Buyer will have a substantial amount to pay for the down payment and should disclose the plan on how will the deal be financed. Funds from investors or partners should be formally committed.

tickmarkBe ready to sign a non-disclosure or confidentiality agreement.

Signing an NDA speeds up the process as the buyer can get the information required to make a decision about buying the business. And gives the seller the trust and confidence that the information shared will not be leaked out.

For a Buyer, who wants to be taken seriously, be prepared before beginning the search for businesses for sale. Business brokers and sellers can easily spot whether you are a “time waster” or a “serious buyer”.

For a Seller, asking some basic questions to qualify a buyer is important – at times this can be a provocative issue as some buyers get offended that they are being pre-screening but this process ensures that you are dealing with a qualified inquiry and a serious buyer. Serious buyers will appreciate this approach by seller though.

My two cents – continue running your business and don’t get obsessed with couple of enquiries even if they are at advanced stage. One thing you don’t want is to lose focus on your business and the business starts to run down.

So, stay focused on running your business till the deal is closed and keep your options till you get the money in the bank.

7 thoughts on “How to know A Prospective Buyer Is Serious to Buy Your Business?

    1. Star Pathani is a retail store, i want to expand it, I want it to be a brand.
      Star Pathani Kurta Pajama & Pathani Retail Store.
      It started in 2018.
      This firm partnership will remain registered.
      This product is made on order in factories.
      There is a demand for this product in market.

      Benefit for customer
      All size available (12 to 44)
      Free Fitting service
      Free Gift Packing
      Festival Collection
      Unique Design
      Unique Packaging And Presenting
      Time, Cost, Quality
      (This facility will create an entry barriers for competitors)

  1. Dear Sir/Madam,
    I am Pradeep from Hyderabad, I have been developed Library management web application (Universal Library Software) In Java (Struts 2.x, Spring 3.5, Hibernate 3.2, My sql 5.2), I have planned to sell this software product to any company/Corporation, If you interested, please let me know sir/Madam.
    Contact Number: 9381514756

  2. I’m looking forward for seed investment on behalf of equity in our beauty tech business which is based in Guwahati Assam. It’s a online platform for booking salon at home and beauty training. We offer salon Spa franchise as well. We are looking for seed investment for further expansion in Pan india. Currently we have our presence in Delhi Ncr, Mumbai, Jaipur and Guwahati. Contact 8638155802 for discussion.

    1. We are looking for buyer for our1100 Acres of tea estate business. Approx cost 450 cr. further negotiable. Our plant is based out in himachal pradesh

  3. I intent to sell my event management company based in north Goà having in house
    Production sound lights decor and transport vehicles
    100% growth in the event business in Goà for destination weddings and corporate events
    Looking for serious buyers for outright sale

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