- May 7, 2022
- Posted by: Business Brokers & Consultants
- Category: Seller Articles
Time is of the essence when it comes to selling your business. There are only so many hours in a day. You need to spend them running the business, not negotiating with a buyer who isn’t qualified to buy it. But…. how can you avoid them? Here are three warning signs to help you steer clear of disappointment and delay when selling your business.
1. Lack of Buyer Experience
A buyer without any experience in your industry can be a red flag, particularly if your business requires it. Even if they are excited about the opportunity, lenders may not be willing to finance the deal.
2. Undisclosed Financial Information
You need to know up-front how much they have to invest and the source of their financing. They don’t necessarily need to submit bank statements. A simple financial disclosure is typically sufficient. If they are evasive about their financials, how will you know they are capable of buying the business?
3. Early Communication Issues
If a company or company’s broker says they are interested in buying your business, but the company’s decision makers are not involved, that is a serious red flag. A company that is legitimately interested in your business will also communicate through a key player like the President or CEO. They may leave later negotiations up to their legal team or advisors, but they will typically “vet” and discuss the transaction with you early on. It’s a courtesy they would expect to be afforded and therefore extend. Nebulous “offers” from mysterious buyers waste time at the least, and can be scams at the worst.
Protect Your Interests
The advisors at Business Brokers and Consultants will protect your time, privacy and confidential information. Our Brokers pre-screen buyers and place a buffer between you and those who have neither the means nor the qualifications to buy. Our goal is to protect your interests, including your time in the sales process.
Copyright: Otis R Florence, Business Brokers & Consultants, Inc.
This article is based on the post 3 Warning Signs for Sellers to Be Aware Of, which appeared first on Deal Studio – Automate, accelerate and elevate your deal making.