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
- Depth of Management
- Diversification
- Business Type
- Growth Prospects for the Business & Industry
- Terms of the Sale
- Employee Stability
- Competition
- Location & Facilities
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
