Is The Seller Serious?

Business owners decide to sell their businesses for a variety of reasons. It is important that individuals, companies or investors seeking to acquire a company conduct proper "due diligence" investigations into the business entity, the existing owner, and that owner's history in operating the business.

Positive Characteristics of a Seller

• Well organized and orderly information (financials, executive summaries, collateral, etc)
• Optimistic and realistic about the future of the business
• Realistic asking price and terms
• Willing to offer seller financing
• Open in assessing wins and losses for the business
• Proactively identifies any key areas of weakness or concern about the business
• Willing to stay on after purchase for transition and new owner support
• Long-term relationships with loyal employees and clients

Negative Characteristics of a Seller

• Exorbitant asking price
• Absence of a professional business appraisal
• Absence of a professional business broker/advisor
• Demands cash upfront payments; offers little or no seller financing
• Not willing to be much help after the acquisition
• Selling the business because of significant, negative trends in business and/or industry
• Pending lawsuits
• High turnover rate with employees, clients, partners, and/or vendors
• Poor reputation on the Internet, BBB, or excessive customer complaints

While financial performance is the primary component analyzed by a savvy business buyer, it is critical that many other factors be examined and considered when buying a business. Due diligence and going the extra mile can be the difference between buying a winner versus buying a lemon.

To learn more about our business valuation methods, please contact us today or call us at 877-797-2825.

Contact Us »