Selling a business can turn out to be a hectic and challenging task. You might have a hard time recognizing a potential buyer. Coming across frauds or people who are just interested in gathering information about your business without buying it is also a major possibility.
So, before you start the process of selling your business, you will want to think carefully about what questions you will ask your potential buyer.
Do they have sufficient industry knowledge?
The first important thing that you, as the owner of the company, need to know is if the buyer has enough knowledge about the industry. You might be selling your business off to this person and have nothing to do with the performance of the business afterwards. But you would surely not want your years of struggle and established reputation go in vain. Therefore, make sure in the very beginning of the process that your potential buyer has a good amount of knowledge about the business and the locality. For example, if you have a business for sale in Miami and your potential buyer is not from the vicinity of this region, it becomes far more important for you to make sure that he knows the location well and understands the value of it.
What are their plans after acquiring your business?
Having theoretical knowledge about the industry and the location that it is based in is not enough. You need to be sure about the goals that your prospective buyer has regarding the business. It’s necessary that his goals match the general idea of what you have had while running your business. You also need to make sure that the potential buyer is informed that he might lose a chunk of customers if he drastically changes the basic layout of the business.
Will they be keeping the existing employee base?
When you're in the process of selling your existing business, you need to make sure that the employees of the business are secured well before the sale takes place. Before you inform your employees about your decision to sell the business, make sure you have had the conversation with the potential buyer. Ask them upfront if they want to continue the business with the current workforce, and then make the changes accordingly.
What is their financial background?
It is a major possibility that the buyer might not buy the business upfront in cash. You have the responsibility of making sure that your potential buyer has a stable enough financial background to support themselves in case they take a loan to buy the business. If not, it might not be the best thing to sell them your business, as they may not get the funding to finalize the deal.
What is the motivation for them to close the deal?
Among all other aspects that we have discussed, the most important thing to note is why the individual wants to buy your business. To make sure that the buyer is genuine, you need to know what his motivation is to close the deal. Therefore, you can decide if the buyer has the potential of actually buying it and running it successfully.