Postings Advertise Resources Blog Discussions About Us Register Login BizBen Podcast   BizBen Podcast  
BizBen.com
500 New & Refreshed Posts, Postings Daily
Over 8,000 Postings & 2,500 Resources
Assisting Buyers & Sellers Over 25 Years!

Categories

8 Items Buyers Of Small Businesses Find Critical When Reviewing Businesses

8 Items Buyers Of Small Businesses Find Critical When Reviewing A Business For Sale: A New BizBen.com Survey Reviews Buyer Feedback

In this month's Business Buyer survey for BizBen.com, we asked participants in our ProBuy Program and 250 other random business buyers what they look for and avoid when looking at a business for sale postings online. Of the 20 potential posting characteristics we asked about, 8 stood out as highly important in our analysis. Everything from SBA loan prequalification to whether it’s important if the seller or broker utilizes a cell phone number for a response.

8 Common Themes Motivated Business Buyers Want To See:

1. Provable Numbers: From Past & Current Financials & Tax Returns

Buyers want to see bottom-line, provable numbers that back up the asking price. Brokers and agents should acquire the tax returns and financials from the seller before taking on the listing, this is a big pain point for buyers. Buyers want justification for the asking price. They want to see cash flow or SDE (Seller's Discretionary Expenses), from previous years and current trends. Sellers can boost the confidence of buyers by detailing all line items of the SDE. Buyers commented, “it’s a waste of everyone’s time to come to the market without being prepared.”

2. Details Matter - The More Information The Better

Buyers want detail. The more they know about the business being offered, the higher likelihood they reach out for more information or schedule a site visit. Your business for sale posting should be a minimum of 150 words. Buyers want to know information about the lease, employee numbers, trendlines, licenses needed to run the business, has the business been pre-qualified for business purchase financing/SBA loan, hours of operation, is the business cyclical (is the business being sold at the right time), what does the client mix look like, etc. Avoid making buyers hunt down information, provide everything they need to know in the for sale posting.

3. Direct Contact & Responsiveness

Make it as easy as possible for serious buyers to contact you. Avoid tedious phone tree systems, use a direct number or cell phone number. Check your email several times a day (you may also want to check your spam or junk folder just in case the message is misplaced), and get back to potential buyers pronto! Serious buyers want responsive sellers and brokers. Many successful business brokers and owners are encouraging potential buyers to text as well as call and email.

4. Ease: Have Critical Information Ready

Most buyers are reviewing multiple businesses for sale - make it easy to buy yours! Have the business tax returns and financials ready for a potential buyer to view. Buyers want to see tax returns and financials, not a promise of "there coming later from the seller" story. Have those documents ready if you are selling a small business. Represent the numbers and trendlines in the body of the posting. Buyers told us that they are less likely to contact brokers or owners who did not include any info about the SDE (Sellers Discretionary Cash) amounts, figuring the broker/owner didn’t know what the amount was or it was so low they didn’t want to post it. According to our survey, buyers don't want to waste their time following up on these postings.

5. The Businesses Story: Past, Present, Future Opportunity

Tell the story of your business, past, present, and future. Buyers want to see the history of a business and learn about upcoming opportunities. Write a complete story in the body of the posting. Share all relevant details and information about your business.

6. Lease & Space Details: More Information Is Better Than Less

Buyers want to know more about the lease situation: how long, any future options, square footage, and other considerations related to the space. Try to put yourself in the buyer's shoes and answer all potential questions.

7. Pre-Qualify The Business For Business Purchase Financing

Has the business being sold been pre-qualified for buyer financing from the sell-side? Having a business prequalified before the sales process makes it a lot easier and faster for a deal to close. Buyers told us they like it when the Broker or Owner has done some research and shopped the deal around with some financial institutions for potential business purchase financing. Make it easy for a buyer to purchase your business.

8. Resources To Close The Deal

Have resources for the potential buyer to utilize - due diligence, escrow/bulk sale services, inventory count services, etc. Letting buyers know you have these potential services ready for referral makes it easier for buyers to pull the trigger and write an offer.

About The Author: Peter Siegel, MBA is the Founder & Lead Advisor at BizBen.com (established 1994 - 8,000+ California small businesses for sale & wanted to buy postings - with 500 new & refreshed posts daily). BizBen.com offers business buyers, owner sellers, business brokers and advisors free access to online postings, articles, blog posts, discussions, podcast, resource and broker directories, etc. Peter heads up the BizBen.com ProBuy, ProSell, & ProIntermediary Programs. Peter Siegel, MBA can be reached direct at 925-785-3118.

Categories: BizBen Blog Contributor, Buying A Business, How To Buy A Business

Contributor:

Peter Siegel, MBA
Areas Served: Nationwide - All Areas
Phone:  925-785-3118 Cell, 925-785-3118 Text
Peter Siegel, MBA - Founder Of BizBen.com (since 1994), I am the Lead Advisor for the ProSell, ProBuy, & ProIntermediary Programs. I advise/coach buyers, sellers, and brokers daily about buying & selling small to mid-sized businesses throughout the Nation. I can be reached direct at 925-785-3118.

Other Related Blog Posts, Articles, And Discussions You May Be Interested In

Card Or Coin Laundry Debated Coin Op Laundromat Or Card Operated Laundromat? Steve Erlinger Discusses

More and more we see "Coinless Laundromats". Anyone in the business or entering the business will face the age old question; Coin or Card? Well, perhaps it's not an age old question, as card systems haven't been around very long, but it is a question worth considering. Steve Erlinger explains.
Pocket Listings Pocket Listings: Vast Hidden Market Or Myth With Business Buyers & Sellers?

What percentage of businesses for sale that are advertised and/or sold are pocket listings? What is the best way to find out about pocket listings? Are they advertised? Are they a big part of the businesses sold marketplace? In this Discussion ProIntermediaries and ProAdvisors discuss this topic.
Buying A Business Without Financials Business Seller Doesn't Have Recent Financial Figures: What Should I Do?

The owner selling the business doesn't have recent financial information or documentation but insists revenues are increasing. Should buyers believe the seller? What should buyers do in this situation? ProIntermediaries on BizBen answer the question of verifying seller/owner's financial claims.
Disclosures Needed For Business Buyers What Do I Need To Disclose To All Prospective Buyers Of My Small Business?

When selling a small business you always run the risk of a lawsuit. They aren't as common as one may think in this litigious world in which we live in, but whenever there is money exchanging hands & attorneys involved the stage is set for a lawsuit. Various ProIntermediaries share their viewpoints.
Buying An Absentee Small Business The Pros And Cons Of Buying An Absentee Run Small Business In California

Peter Siegel, MBA - BizBen Founder discusses the difference between a hands on owner and an absentee owner. It covers why someone would want to be an absentee owner and then goes on to discuss the pros and cons of buying an absentee run small business in the California marketplace.
Buying A Janitorial Service Janitorial Cleaning Services: 6 Considerations When Buying A Janitorial Firm

Buyers interested in buying a janitorial cleaning business will find companies in this industry for sale that are quite profitable. Careful due diligence, including the six factors covered in this blog post, is advised before completing a deal. Peter Siegel, MBA with BizBen explores this industry.
Dual Agency Brokers Does Dual Agency Really Work For All? ProIntermediaries Discuss This Topic

Who really represents the buyer? The selling broker or agent through dual agency? Many brokers and agents weigh in on this Discussion on BizBen. Bottomline is all business buyers need to know who really represents them and has their best interest at heart when seeking and negotiating on deals.
Business Buyer Feedback On Postings 8 Items Buyers Of Small Businesses Find Critical When Reviewing Businesses

In this month's Business Buyer survey for BizBen.com, we asked participants in our ProBuy Program and 250 other random business buyers what they look for and avoid when looking at a business for sale postings online. Of the 20 potential posting characteristics we asked about, 8 stood out with most.
Selling A Business 13 Crucial Tips Selling A Small To Mid-Sized Business: 13 Crucial Items To Sell A Business

Only 30% of all small businesses for sale that are put on the market overall are sold! A surprising statistic to most business owners, agents, and brokers trying to sell a small business! If however you follow the strategies (BizBen Protocol Method) in this blog post you should see success!
Questions When Buying A Liquor Store Buying A Liquor Store: 3 Questions To Consider And Ask Before You Purchase

Buying a liquor store? First, ask yourself these three critical questions to find out if owning a liquor store is right for you. Questions like hands on vs absentee ownership, inventory turnover, licensing issues. Peter Siegel, MBA (BizBen ProBuy & ProSell Program Lead Advisor) explores this topic.