As a Seller, you can contribute to your own success in many ways. Remember that your view of the business may be different than the view of a potential Buyer. Here are a few guidelines:
If the Buyer requests information, provide it as soon as possible. By responding quickly, you will help establish trust and give the impression that your business is well managed, and that you have nothing to hide. Delays may lead to a skeptical Buyer.
Many transactions are completed because trust and good chemistry exists between a Buyer and Seller. This develops through honest, frequent communication.
Be prepared to discuss financial information, customer/market information, product secrets, etc. This allows the Buyer the ability to develop a deeper understanding of the operation of your business.
Buyers will often ask questions that may seem a little personal, but rarely are they intended to serve any purpose other than gathering needed information for a Buyer to make a decision.
Look for the potential in the Buyer and let them know they are capable of successfully managing the business.
First impressions do count! You have become accustomed to the look of your place of business so step back and look at it through new eyes. A Buyer will quickly draw conclusions about product quality and the general organization of the business based upon the appearance of the facility.
A Buyer will view your business from the perspective of managing and improving it. There are probably several things that you could suggest a new owner do to accomplish this. Help the Buyer understand these opportunities and allow them to see the upside potential.
Once a serious Buyer has been identified, plan meetings when you will not have the threat of canceling or being interrupted with phone calls, etc. As due diligence begins, this will become even more critical. You may think that being busy might cause a Buyer to feel there is good business activity, but instead they feel that you are not serious about selling. Keep appointments — make yourself available and be attentive.
Time kills deals. When a Buyer has to wait weeks for a Seller’s accountant to prepare financial statements, the enthusiasm to move forward is sometimes lost.
Whatever the selling motivation, there is almost no way to avoid the emotions you will experience as you go through the due diligence and sales process. The Buyer will also be participating in similar emotions. You may find you have to keep reminding yourself of the original reason for selling.
Surround yourself with a team of qualified transaction-oriented professionals around you who understand that your goal is to sell the business in a timely manner. Bring them into confidence early in the process so there are no surprises. Make sure that they know you want their support and assistance in achieving a successful transaction. If your existing advisors are not experienced with similar transactions, as professionals, we can assist you by providing names of qualified advisors.
It is easy to let your enthusiasm about the sale distract you from running your business. It is imperative that you continue to focus on business as usual so that the business remains healthy and vibrant during this very critical time. A Buyer wants to inherit a business that has been well managed right up until the sale is consummated. Do not postpone or ignore critical decisions.
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