When looking to purchase a business, it makes sense that buyers consider many factors before putting in an offer. Negotiating these terms can be a long and complex process, especially if you go about it on your own. The team at Sunbelt Business Advisors takes the stress and confusion out of selling your business. By working directly with buyers and sellers, we can negotiate for the best price and incentives for both parties, giving you ease of mind knowing your business is being valued and sold at a competitive market price to the right buyer. Many qualified purchasers in Santa Clara County and San Jose, CA are ready to buy your business. If you are looking to make a change and sell your business now or in the near future soon, our broker services strategies can sell your business quickly and at a great price.
As a seller, it is important to understand what buyers are looking for in a company that they are considering for purchase. Here are some examples of buyer considerations:
Strong Company Brand
Brand appeal is an essential part of a successful business. Your company brand communicates what your customer base knows and shares about your company, including what your company specializes in, how they treat their customers and employees, and how involved they are in the local community. Having a recognized and beloved company brand is a great incentive for buyers to purchase your business, as the likelihood of the business’s success is higher. It is always important to remember that buyers are looking at risk when potentially purchasing a business, and a strong brand appeal helps minimize that risk.
Current Owner Is Not Essential
When selling your business, it is important that the core functions and success of the company are not dependent on the owner. Buyers are looking for a business that can operate successfully without the owner being present, as this may not be the only business they own, or they may not wish to run the entire company themselves. This is also why it is very important to keep your key employees happy and on board while preparing for transitioning out of your business.
Business is Profitable With Positive Future Prospects
If a business is profitable with sustained success, buyers will be eager to purchase at a competitive price. However, if the company has a history with struggling financially, many buyers are not willing to take on that risk, especially when it may involve intensive restructuring and refinancing of the company.
Future Revenues are Protected
If the company has the majority of its revenues coming from a single customer, buyers may be hesitant to jump in and purchase. Without diversified revenues coming from a variety of places, the reliance on a single revenue source is often far too risky for buyers. Buyers prefer purchasing a company with a model in which revenues are locked in for the future and the risk and impact of potential customer attrition is limited.
No Hidden Liabilities or Financial Problems
Many would-be buyers are not willing to buy a business that has chaotic financial or legal liabilities , such as labor problems, impropriety, shareholder infighting, or other issues. If your business has any of these types of issues, working with an agent of Sunbelt Business Brokers in San Jose, CA can help you recover to get your business to a sellable state.