What Do Business Buyers Want?

We have found that there is no typical business buyer. There are some key issues most qualified buyers consider.

We find that buyers are generally risk adverse. One way they manage risk is to focus on well run businesses. One with clean financial records, long track record, great reputation and qualified staff in place. They also want to know how the existing owner can be replaced with losing staff, clients and vendors. A history of providing enough cash flow for debt service and a return on their investment or adequate income would also be considered in the risk evaluation.

Businesses that don’t demonstrate any yellow or red flags during the initial considerations get a deeper look. The buyer will look for new opportunities, synergies, market conditions and room for growth. Several years of consistent sales/profit, client contracts, niche markets or a solid base to build on are a bonus.

Businesses that appear to have elevated risk can still be sold. Though they often require more time and get lower offers.

AEGIS provides free consultations to help business owners prepare their business for sale. This includes a Rules of Thumb Most Likely Selling Price Valuation and a plan to enhance the business value prior to listing the business for sell.

We can also assist buyers evaluate a business they are considering purchasing.

About the Author: Richard Roberts is the Managing Broker at AEGIS Business Brokers, LLC

Richard started his first full time business at the age of 22 and has always maintained at least one business as an owner ever since. He has been recognized by the ABBA American Business Brokers Association and the IBBA International Business Brokers Association by be awarded the rating of ABI Accredited Business Intermediary, SVA Senior Valuation Analyst & CBI Certified Business Intermediary; one of seven in the state of Arkansas.

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