Strategically, your Information is The Business.   Your Business processes, your clients, customers, your contracts make up the Value you will transfer to a Buyer.   Your time and focus is one of your most important resources.  Therefore, as a Seller of a Business if you are spending your time and attention sharing the Value and Information that comprise your business it needs to be treated as Valuable.   

 

Brokers.Law’s process for Qualifying Prospective Buyers is part and parcel of how we present your business-it is key to maximizing your return when you sell your Business.   

 

Qualifying Buyers starts with determining, based on your circumstances, who your pool of ideal buyer candidates would be:

• Who needs to buy your business for strategic growth

• Who wants your business to gain economies of scale in their market

• Who is a defensive buyer and wants to limit their competitors

• Who wants your business for instant legitimacy in a new market

• Who is capable of running your business 

 

The Brokers.Law process starts with determining your key buyer pool and reaching out to those prospects about the Business Opportunity.    The invitation process itself is part of the qualifying process.   The prospect pool will know this is being offered to a limited pool of strategic buyers.  Qualifying Buyers is not just about making sure they can purchase your business-it is spending time with those that have the skill set to recognize and take advantage of the opportunity.   

 

We then require a Confidentiality Agreement before we will disclose even summary information about the Business Opportunity.   

 

With Confidentiality in place we can discuss in greater detail the opportunity.   This is a two-way street the Buyers and the Seller start exchanging information.

 

The real qualification process occurs prior to going to Contract or the Letter of Intent Stage-someone looking to tie your business up for 6 months of due diligence doesn’t make sense–They either don’t know how to evaluate your business or are trying to string you along and drop their offer at the end.    

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Then the nuts and bolts qualifying can take place:

• Is the Buyer in the Market in the same time frame as the Seller-what is their sense of urgency

• Does the Buyer have the present capital to take advantage of the Opportunity

• Who is the Decision Maker for the Prospect-How many people have to sign off on the purchase

• Is the Buyer a Cash Purchaser/Traditional Financing/Seller Financing

• Has the Buyer purchased Businesses before

• Does the Buyer have experience in the industry

• Do they have the education, professional designations, licenses and/or previous job experience to properly own/manage your business

• Can the Buyer take over at closing or will the Buyer require a transition period and training

• Are the Buyers asking the right questions about the Business

• Does the Buyer have a transition plan

 

Qualifying a prospective buyer also eliminates wasted time and resources on unworthy prospects, and greatly enhances the opportunity to close the transaction in a timely manner.

 

Your most important information, whether that is your customers, your employees, your suppliers or your contracts is not disclosed, unless the prospective buyer has gone to the Letter of Intent or contract stage.    Selling your business is a formal courtship-not a kissing booth.