With over two decades of experience in our field, National Industry Network Business Brokerage has come across a myriad of small business buyers, and while every buyer is different, there are several components on every buyer’s list that tend to be universal in terms of what small business buyers are searching for. Here’s a list of a few key items on every small business buyer’s list:
A Well-Established Business
- As with any major purchase, most small business buyers utilize an entrepreneurial approach when determining what business to buy. By conducting proper research within the industry of the business they are looking to obtain, buyers are able to gauge whether or not the acquisition will be in their best interest financially speaking.
- Qualified buyers will use financial metrics as well as a spectrum of other qualities when considering the purchase of a small business. Three years of consecutive ownership is often preferred along with, at minimum, an equal number of properly filled tax returns to assess the overall stability of a business.
- Buyers are most attracted to businesses that have of strong records indicative that the company is not only capable of demonstrating verifiable financial security, but additionally, that the business has the potentiality to display ample opportunity for growth once purchased.
A True-to-Market Price Point
When weighing out options, it is no surprise that some buyers tend to shy away from businesses listed for sale with inflated price points.
When pricing your business, it is essential that the valuation of the company being sold is reflective of the actual revenue and income of the business itself. Over-valuation of a company can be a detriment to the selling process for both parties during the transaction. Over-valuation can lead to longer transaction times and occasionally the dissipation of a deal entirely if the seller is unwilling to budge in price.
It is important that the seller has practical and realistic expectations throughout the entirety of the selling process.
Offering financing for potential buyers is another aspect of a sale that some buyers find enticing when looking to buy a small business.
Timeliness and Transparency
- Though seemingly self explanatory, buyers appreciate timeliness on part of the seller’s responses to potential inquiries concerning various aspects of the business including daily procedures, clientele demographics, staffing needs, etc.
- Buyers want transparency on all fronts concerning the business they are looking to purchase. It is of the utmost importance that sellers wishing to expedite the selling process provide accurate of information pertaining to the business, without extrapolating crucial details.
A Seamless Closing
- Perhaps the most daunting task of any transaction, the closing process can often be very intricate and tedious for both parties. A smooth closing is one of key items on every buyer’s wish-lists.
- National Industry Network Business Brokerage works with both parties involved in the transaction in order to facilitate the closing of a sale in the most streamlined way possible. Our goal is for both parties to feel confident and comfortable in the transfer.
- The legal aspects and paperwork can often be overwhelming to first time sellers or buyers which is why working with NINBB can be the difference between a celebration at the closing of a quick, efficient transfer rather and strenuous uphill battle when completing the sale of a business.
An Involved Seller
- Most Buyers are looking to retain the current customer base when acquiring a small business. Well-trained and loyal employees are also on every buyer’s list.
- Having an involved seller around to aid in the transfer of the business can provide a sense of comfort for buyers as well as for their new employees and customers.
- Although a seller is not expected to remain extensively involved in the recently sold business’s operations, some buyers do appreciate having the access to the previous owner for a short period of time subsequently following the transaction in case any unforeseen circumstances arise.
As one of the nation’s leading resources for business buyers and business sellers, the representatives at National Industry Network Business Brokerage is happy to serve our clients throughout the entirety of the selling and buying process. If you are looking to buy or sell a business, visit our website ninbb.com and fill out the submission form, or send us an email at info@ninbb.com
