Member Article

Your handy checklist for meeting potential buyers of your business

Whoa! Before you even think of setting up appointments to meet potential buyers, go back a few steps. Are you meeting them after they’ve signed the confidentiality agreement or before? Ideally it should be after. You really don’t want to show your hand, ie your name and company, until you are sure of the following:

1. The business agent has not only spoken to them on the phone but has met them on his own in person. Your agent has had lengthy talks with them and has done a thorough research into their financial status, business acumen, expertise in the area of your business, and last but definitely not least, their reputation. If the buyer seems a good candidate, then – and only then – should the meeting be arranged with you.
2. You should not be meeting more than a handful of prospective buyers. The agent should have whittled them down to a shortlist before you meet them.
3. Your business agent needs to be at the meeting as well as you. S/he might say it isn’t necessary now they’ve been vetted, but believe me, it is! You need two heads to weigh up the candidates, and what you might forget to ask, your agent will likely remember. Also, people tend to open up more on the second meeting, giving you both a stronger idea of their suitability.
4. Have a pad and pen (more friendly than a laptop) and list of questions which you’ve already discussed with your agent. Don’t feel embarrassed about writing notes in front of the buyer. It looks professional – that you mean business. It’s surprising how easy it is to forget what people say, especially if you have two or three meetings on the same day. Your agent should also be keeping an account.
5. Gut instincts should be working overtime now you have the prospective buyer in front of you. Never suggest a glass of wine, even if the meeting takes place in the evening. You want a clear head. You need to watch body language, appearance (appropriate for the meeting and the kind of business you’re selling), their voice and manner, how they answer your and your agent’s questions, and ideally have a spark of humour. But most of all, you must feel comfortable with them. You’re going to be working closely with them for several weeks or even months, and you need to know that when you hand over your business your staff will be reassured and happy.

And after your various meetings is where the real fun (and headache) starts. An offer or offers come in. I have plenty of advice when this happens but that’s another article!

Seller Beware – How Not To Sell Your Business by Denise Barnes is published by Biteback Publishing. You can follow Denise on twitter @denisebarnesuk or see denisebarneswriter.com

This was posted in Bdaily's Members' News section by Denise Barnes .