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.
|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.
|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.
|George Lanza, Business Broker, At Plethora Business Sales
Plethora Businesses, a division of A Premier In Services, Inc., is a Business Intermediary Consulting Firm headquartered in Orange, California. Plethora specializes in the listing and sale of small and medium sized private businesses.
|Joanne Weber, Broker - Preschool Specialist - Southern California
The Ryan Craig Company is in its 35th year as the recognized expert in Southern California, dealing exclusively in the sale of preschools, Montessori schools, day care centers, and private schools. Our extensive list of references speaks for itself. Phone Joanne at 818-760-3684 for more info.
|Steve Erlinger: Laundry Broker, Consultant - Orange/Riverside Counties
I specialize in the laundry industry (Broker/Consultant at 949-500-5893) - Riverside, Orange Counties. I assist buyers navigate the many facets of finding, evaluating, and operating a laundry business. I also help current laundry owners find additional stores, sell, evaluate an existing laundromat.
|Mike Brewer: Liquor License Brokers, ABC Consulting Services
Liquor license brokerage and consulting services. We provide: Alcohol License Transfers Application Consulting & Processing, Liquor License Purchases & Sales, City Zoning Permits & Land Use Entitlements, Public Convenience or Necessity Findings and Letters. Phone Mike Brewer direct at 800-437-1100.
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|Attorney Specialist Shares Escrow Instruction Tips When Buying A Business
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|Mentoring In How To Buy A Business - Tips From Expert Willard Michlin, CPA
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|Purchase A Business With Limited Or No Cash - Financing Tips For Buyers
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