The Biz Blog
May 12, 2010 by Robert Dean
When selling a business, you want the most qualified person to purchase your company. Finding the right buyer is the key to a smooth sales transaction, and will also contribute to the continued success and growth of the company.
When qualifying a buyer, you want someone who is both financially capable, and also someone who has the business knowledge & experience to take the company to the next level.
Business Brokers will look at many aspects of the buyer in order to qualify them. The key is to make sure that they are the right fit for the company. In regard to their business experience, a broker will examine several factors, including:
- Educational Background
- Have they owned a business
- General Management Experience
- Marketing & Sales Experience
- Operational Experience
- Inventory Management
- Do their skills compliment the company
- Communication & Customer Service skills
In regard to their financial qualifications, a Business Broker will also look at several different factors, including:
- Net Worth
- FICO Score
- Income Requirements
- SBA Requirements
- Any Bankruptcies or Foreclosures
- Down-payment
- Any Judgments filed against
- Are they Currently Employed
Selling a business is a painstaking process and may take 6- 9 months to complete a successful sales transaction. Finding the right buyer is one of the many challenges a Business Broker has to deal with. In order to protect a seller, a good Business Broker will examine the buyers qualifications before they will disclose any information on the business. A broker wants to make sure that the buyer is fully capable of not only of purchasing the company, but also of successfully running the business.
Matching the right buyer with the right business is how we define success.
Business Sales Process, How to Sell
