Quick Checklist to make sure your are asking the right questions. 

 

• Does the Prospective Buyer have the resources readily available to make the purchase?

  • ​Cash on hand

  • Financing arrangements already in place

  • Requiring Seller  financing

  • How much money do they have for down payment

  • Will the prospective buyers require an earn-out provision

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• What is the Prospective Buyer's timeline for purchasing the business?

  • Does Prospective Buyer's timeline fit with yours

  • What is their level of urgency

  • If they have been looking for an extended period of time

  • Have they purchased a business before

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• Is the Prospective Buyer capable of managing your business​?

  • Skill set

  • Qualifications, Education or Licenses in order​

  • Ask the right questions​​​

    • Have the owned and/or managed a business previously

    • What type of business have the owned/managed before

    • Industry Experience

    • Are they managing the business or are they remote investors

    • Is their team in place

 

• Are they asking you the right questions​?

  • Why your business

  • Do they have a transition plan/Team in place

  • Transition period

 

• Watch out for Predatory Buyers/Sharks​

  • Distressed owner or business

  • Undervalue company

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• Watch out for Unethical Buyers​

  • Background checks

  • Involved in litigation