When buyers approach you to buy your company, you have to take a deeper look than what’s presented on the surface because not everyone is eligible or the right fit for purchasing your company. Lately, the number of people seeking out businesses has increased due to the success of many online and offline companies in the current economy.
Unfunded buyers could be con artists, but others will just be looking for distressed businesses. It’s important to know the difference between a good guy and bad guy when it comes to selling your company. A bad guy buyer will agree on a part-cash part-seller financing deal and negotiate price or even be willing to promote an all-cash deal.
This can get you, as a business owner, very excited about selling so that you start envisioning the steps for planning your life after you are out of the business. Some of the challenges that can be presented by these unfunded and unqualified buyers though include dragging out the discussions for selling the company to frustrate you.
Picking holes in the agreements you have already verbally made or even complaining about the most minor aspects of your company, they’ll find endless faults with figures and facts that you have presented to them even after you have done your due diligence. The purpose of this kind of approach is to put you on the defense and to force you to make concessions because you fear that you are at risk of losing the sale of the company altogether.
At every one of these interactions, you are likely to spot that the cash component of the offer drops. This steady and slow process still gives you hope of selling the business and therefore keeps you strong long after you should have walked. Eventually that buyer might get to a point where they are putting up close to nothing to buy your business and putting the financing on you as the seller, such as you agreeing to take up that balance and installments from future profits.
Finding the right buyers doesn’t have to be something that falls in your lap completely. This can be outsourced to your experienced and knowledgeable business broker.
At Website Closers, we know how frustrating it can be to try to manage every aspect of your business sale. After all what you do best is ensuring that the company is profitable and that the books are clear and clean for a smooth transaction.
Setting aside time to speak with the brokers at Website Closers can help you to clarify what you need to do and what should fall on the responsibility of your broker or the buyer of the business. Furthermore, a savvy website broker will know how to avoid conversations that waste your time because the buyer is not serious.