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!
Categories: BizBen Blog Contributor
|Helpful Resources To Assist In Selling And Buying California Businesses|
|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.
|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 805-428-2063.
|Brad Steinberg, Broker - Laundromat Specialists
PWS is the leading laundromat broker in California. Since 1968 PWS has brokered over 2,500 laundromat sales. With over 90 employees dedicated to the coin laundry industry, PWS has 18 licensed agents, a 3 person in-house finance department, 10 service technicians and a 20 person parts department.
|Mike Hurrell, Broker: Coin & Card Laundry Specialist Brokerage
Providencia Properties Inc in association with Golden State Laundry Systems is a full service Coin Laundry Real Estate Broker. At GSLS you will receive personalized attention from our professional staff of coin laundry experts. To sell or buy a Southern CA laundromat call Mike at 310-223-2240 X209.
|Chuck Post: Laundry Buyer Representation, Consulting, Due Diligence
Chuck Post has 32 years experience in the laundry industry, specializing in assisting laundry buyers (and entrepreneurs) with buying or starting up, building, re-tooling, laundries throughout California. Laundry buyer representation, consulting, due-diligence, lease negotiations, laundry valuations.
|Janet Carrera - Escrow & Bulk Sale Services - SF Bay Area
Redwood Escrow Services, Inc. is a full service, licensed independent escrow company. We are EAFC Fidelity bonded, fully insured & licensed with the Department of Corporations. Committed to offering our clients the most comprehensive variety of escrow services available. Phone Janet at 510-247-0741.
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