Bill Kobayashi, CBI, CSBA, CMEA, CBC answers the blog question of the week:
"What questions do you suggest I ask buyers early on over the phone to see if they are qualified and good candidates to buy my business?"
When we receive an initial buyer inquiry on a business, before disclosing anything more about the business than advertised, we request completion and return of our non disclosure packet.
The packet leads with an instructional cover letter, a well crafted buyer information form and request for a resume if the buyer feel it will assist in assessing their qualifications for the business.
After receipt, we follow up with a phone call to clarify answers or solicit additional information.
Our line of questioning is specific to a particular type of business so it's difficult to script questions to such a broad question but generally as a seller, you will want to first develop a written profile and formula for a successful business owner.
What level of formal education and related industry work experience is required for success
Financial requirements of the business and the buyer will also need to be assessed. Assessing and determining the initial working and investment capital needs of the business can assist to determine the minimum net worth requirement of the a qualified buyer that can execute the transaction.
Questions can then be developed and efficiently targeted so as not to waste the time and effort of both the seller and buyer and disclose more information than necessary on the business.
About The Author: Bill Kobayashi, CBI, CSBA, CMEA, CBC assists small business owners in Southern California with the confidential transfer Of ownership by offering business valuation and exit strategy planning as well as business intermediary Or merger and acquisition services. Reach him by phone at 866-898-9708..
Watch for more blog posts / articles from me in the future!
See all contributions from William N. Kobayashi, CBI, CSBA, CMEA, CBC
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