Asking potential buyers questions before releasing information (determining level of commitment and interest) is important for any seller (and broker or agent). Below is a list of questions to ask potential buyers and items to consider before releasing information to potential business buyers when selling a small business:
1. What is the buyer’s business background?
2. What drove the buyer to be interested in my business?
3. How much money down does the buyer have? Are they SBA pre-qualified?
4. How much working capital will the buyer need to have over 1,3,6 months?
5. How soon does the buyer wants to buy the business?
6. What kind of weekly work schedule will the commit to the newly acquire business?
7. What is the FICO (credit) score?
8. How long has the buyer benn looking into buying a business?
9. Where does the buyer live now and will he relocate if he has to?
10. If the seller’s business requires traveling, will the buyer have problems with such?
11. If the buyer is not fluent or skilled in communicating with the employees, will this hampered the business in anyway?
12. Does the buyer has investment partner or mentor who can make a difference in the business buying decisions?
13. What expectation does the buyer have on the R.O.I. etc, on the new business?
14. What does the buyer need from me (the seller), during due-diligence in order for him to make a decision on the purchase?
15. Is there anything else that will either make or break the sale of my business before going ahead with the due-diligence?
About The Author: KC Choi offers business brokerage services to both buyers and sellers in the Los Angeles and Orange County areas. 25+ professionals (multi-lingual) assist buyers and sellers with business brokerage transactions. KC can be reached by phone at 888-848-8528.
Watch for more blog posts / articles from me in the future!
|Helpful Resources To Assist In Selling And Buying California Businesses|
|Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence Services
Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 800-864-0420.
|Mark Chatow, Esq.: Legal Services For Buying, Selling Businesses
Mark has a broad range of small business purchase & sale experience from analyzing potential acquisition targets to successfully guiding buyers and sellers through the purchase & sale of small businesses. Mark can assist with contracts, negotiations, legal matters, etc. Reach Mark at 949-478-8393.
|Diane Boudreau-Tschetter: Escrow And Bulk Sale Services
California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100.
|Helen Yoo: Escrow & Bulk Sale Services - Southern California
New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.
|William Park, Business Broker - Southern California
Highest Volume Broker in California, Simply Check our HUNDREDS of Listings! Over 25 Associates, Speaking Dozen Languages, Helping Buyers and Sellers of Small Business since 1982, Centrally Located between Los Angeles and Orange Counties, while Riverside & San Bernardino Counties are Very Accessible.
|Rick Carlson, Business Broker - Southern California
You Will Never Feel Lost In The Shuffle. Many Brokers Simply Send Out An NDA And That's The End Of Communication. All Buyers Receive A Personal Meeting With An Ace Acquisition Specialist So They Can Recommend The Perfect Business For You. Phone Rick direct at 800-985-4939.
|Larry Larsen, Broker, Laundry Specialist - Orange, LA Counties
Larry Larsen, Realtor has over thirty years of experience in the sales, ownership, management, and construction of coin laundries. He is a licensed broker active in the sale of coin laundries, a licensed insurance agent specializing in coin laundry insurance. Phone Larry at 714-630-9274.
|Steve Zimmerman, Restaurant Realty - Restaurant Specialist
Steve founded Restaurant Realty in 1996. He has personally sold/leased over 900 restaurants, bars & clubs, & completed over 3000 valuations. The author of "Restaurant Dealmaker - An Insider's Trade Secrets For Buying a Restaurant, Bar or Club" available on Amazon. Reach Steve direct at 415-945-9701.
|Related Articles, Events, Blog Posts, Discussions, Videos, Interviews|
|Due Diligence Issues: What Business Buyers Should Know About The Process
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|Workshop 3/11: How to Find Profitable Businesses For Sale Not On The Market
Workshop: Find Businesses Possible For Sale Not On The Market - Seal Beach Location. Date: Saturday 3/11: 1:30 PM to 5:30 PM. Call 800-864-0420 for more information or to register. Willard Michlin, CPA will be presenting this workshop.
|Purchase A Business With Limited Or No Cash - Financing Tips For Buyers
Purchasing a business with no money down can be difficult, but not impossible. Financing a business purchase or down payment can often be accomplished with these strategies from Peter Siegel, MBA (Business Purchase Financing Expert, ProBuy & ProSell Program Advisor with BizBen) at 866-270-6278.
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|Differences Between Business Appraisers, CPA's, And Due Diligence Experts
What are the differences between a Business Appraiser, CPA auditor and Due Diligence Expert - and why should you care? Insights from Willard Michlin, CPA (800-864-0420) in his latest BizBen blog post that will be useful for someone engaged in, or planning to conduct due diligence in the future
|Mentoring In How To Buy A Business - Tips From Expert Willard Michlin, CPA
Willard Michlin, CPA a due diligence specialist shares his views on the mentoring process & about how buyers can "profit" from such a relationship when searching and buying a business. Mr. Michlin, CPA (800-864-0420) performs due-diligence services and and consulting services for business buyers.
|Business Purchase Financing Expert Gives Tips On Proving Cash Flow
What are the actual "provable" adjusted net earnings (cash flow) of a small to mid-sized business being purchased? Buyers need to look carefully at all financial info for the "real" adjusted net income or cash flow. Peter Siegel, MBA (business purchase financing expert) at 866-270-6278 explains.
|FREE Workshop 3/11: Due-Diligence When Buying And Selling A Business
This workshop is about the due diligence process of buying & selling a business. Saturday 3/11, 9AM to 1PM (refreshments will be served) located in Seal Beach. Phone Willard Michlin (CPA, Certified Fraud Examiner, Due Diligence Expert, Business Broker) for more info at 800-864-0420 & to RSVP.
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