When it comes to selling a business, the most important thing you have to do is verify that the buyers you are in contact with are serious buyers. A lot of times, the buyers who come knocking will either not have the money to finance the purchase or they will simply be window-shopping. To keep you from wasting time with such buyers, your business broker Vallecitos will ask a series of questions which are meant to uncover the following.
Meeting a serious buyer is just not enough. If a buyer has a great future for your business but lacks the financial strength to acquire it, you will be wasting time with them. That is why examining the financial statements of a buyer is one of the first things a business broker Vallecitos will do. The business broker will look at the credit report of the buyer, their income tax returns and any financial liabilities like rent and monthly expenses. Does the candidate pay their bills on time? Have they ever filed for bankruptcy?
You definitely don’t want your business to go under after selling it. That is why you should insist on seeing the business plan that the buyer has. You should know what the buyer’s intentions are in regards to the staffs, location and products and/or services they will offer. The goal here is to determine if the buyer will be able to earn money needed to make any deferred payments regarding the purchase price of your business. The buyer’s business plan further helps you understand if your vision and that of the buyer align.
The last thing you want is to sell your business to a conman. The purpose of a background check is to confirm that the buyer is who they say they are. Are there any legal judgements against them? Is there any reason that can keep the buyer from obtaining the license needed to operate the business?
Last but not least, you need to contact people who can vouch for the buyer. References bring credibility. A buyer should be willing to provide the contact information of personal friends through charities or memberships, professional colleagues and friends they have known for several years.
Selling a business is never as straightforward as most people think. There is a lot that goes into the whole process. That is why it is important to always enlist the help of an experienced business broker Vallecitos to guide you through. Find a broker that has sold businesses that are similar to yours and has a high success rate.