Choosing the right buyer for your business
The sale of a business is only as successful as what happens after completion and ownership transitions from one party to another.
While most sellers will want to attract the highest offers possible, this should not be the only factor when choosing the buyer. It is key to consider whether the buyer’s goals are aligned with your own, both during the transaction and after.
For example, do the buyers share your values and what do they intend to do with the business following completion? How will they continue to offer your customers the service they have become used to? Will you remain involved in the business for a defined period to assist in this transition?
You may have spent considerable years building a reputation in your field, and therefore may prefer a buyer looking to grow and develop the business in a similar vein. You may be more content with an investment buyer who is looking for rapid growth, or even a competing business looking to eliminate the competition.
On top of alliance with values, prudent sellers will also perform due diligence on potential buyers, making sure that they have the funds to complete the purchase, as well as assessing their experience in acquisitions and their attitude to risk.
Having this knowledge prior to accepting the offer and getting into the transaction process can avoid issues later down the line. Ultimately, as you look to exit your business, it is crucial that you consider your objectives, and secure a buyer that is most likely to meet them.
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