Has someone said they have a buyer for your business? When we are talking with clients often they will tell us that someone has previously made contact to say they have a buyer for their business.
If this happens be suspicious, it could be genuine and you don’t want to miss a golden opportunity but be cautious.
Approach by a business broker
It could be that the approach is from a business broker, if they categorically state that they have a buyer it is highly unlikely.
If they have a client seeking a business like yours which is a possibility , the broker should be able to give summary of the key criteria their client is seeking these could include:
- Size of the business
- Customer base
- Is the business under management or owner operated
- Brands or Intellectual property
If you feel that your business fits some or all of the criteria it’s probably worth inviting the broker in for a more detailed discussion.
Approach from an Independent buyer.
If the approach comes form and independent source proceed with caution don’t disclose any information and in reality you should engage and advisor to assist. There are many areas that need to be explored with a buyer that are best managed by an advisor such as:
- What is their business background and experience ?
- How much research have they done into your industry?
- How long have they been looking for a business ?
- How soon are they ready to buy?
- Do they have an accountant and solicitor to act in the purchase?
- Do they have partners that also need to approve any business purchase?
- Do they have funds available to complete a business purchase?
You may ask why all the questions or you may feel that some of this is unreasonable to ask someone who may want to purchase your business , however the reality is without know all of this there is no point in having any discussions. These points and many others clarify how genuine the approach may be
As business advisors our role is to act for a business seller and avoid time wasters and more importantly people fishing for confidential information. Engage a broker to make sure confidentiality is covered off and your business is presented in the best possible light to maximise business sale value.
If you are approached by someone saying they have a buyer for your business and you’d like to have a chat about how to proceed please get in contact.