As you get set to sell my business Rancho Santa Fe, the first point you must remember is that there is no one type of buyer. There are five types of buyers you will have to know about if you want to achieve a successful transaction. In this post, we will be taking a look at each type of buyer, and their behavior.
First time business buyers make up about 90% of all buyers. These are usually people trying to leave the Corporate America and buy a business so that they achieve a better quality of life, be their own boss and attain financial freedom. The main issue with first-time buyers is that you have to interview them to understand their strengths, weaknesses, passions, and why they want to buy your business. When the core competencies of a first-time buyer don’t match your business, they are not the ideal candidate for your business.
The next thing you need to ask a first time buyer is how much money they have put down to buy a business. Failing to do this as you sell my business Rancho Santa Fe will only cause you to waste time on buyers that will never be able to afford your business. A business broker San Diego can help prescreen potential buyers to ensure they have the means to buy and run your business.
These are buyers who purchase all kinds of businesses. You can find a sophisticated buyer who has purchased hospitals, construction companies and trucking companies considering your online business. Unlike first-time buyers, sophisticated buyers close the deal faster. They make decisions quickly and they know what they want and how much they want to pay. It is only up to the buyer to accept their terms.
Strategic and competitive buyers
These types of buyers pay more because they buy synergies. These buyers search for businesses that have synergies. They may buy your business for its talented team or anything that can catapult their mother business to the next level. If your business has what they are looking for, strategic and competitive buyers will outbid all other types of buyers.
Private equity groups
These buyers buy a business based on add-ons or platforms. They search for businesses that will be an add-on to their existing platform. For example, if a private equity group wants to get into manufacturing, they can buy a business that is in manufacturing. Such a business will be an add-on to the existing platform.
These are businesses that buy underperforming assets. The buy failing businesses in order to flip them and sell them later for a profit. If considering this option as you sell my business Rancho Santa Fe, you have to understand that turnaround specialists will buy your business very cheap. These buyers are only ideal for failing businesses.