There are many reasons for selling businesses, here is an insight into what business buyers are looking for when business owners are selling a business.
When selling businesses in Central Florida buyers often ask potential business sellers why they are selling. There are three main reasons why buyers ask the question, “why are you selling?”
- Buyers want to get an assurance from the seller’s answer that they are not simply selling because the business is going down a spiral with no return.
- Buyers want to get a sense from the seller’s answer that they will not be looking to sell and then re-enter the same industry or compete in any way with the business they are selling.
- Buyers ask why an owner is selling out of pure curiosity because it helps provide insight into the seller’s overall satisfaction with the business and what their life’s status may look like when they decide to sell.
- Buyers may feel they can get insight into further opportunities for the business. Often times the main reasons and pain points for a seller point to an opportunity for the buyer to improve on. (Potential link to example)
Buyers want to study up on businesses they are interested in. They are optimistic but can be skeptical as well, so it is always important that business sellers answer questions as honestly as possible despite how the optics might look. For example, if the reason for sale is due to health, often times it helps to describe the details and extent of the seller’s health issue. Reasons such as health helps reassure a buyer that the seller’s reason for sale is genuine. At the same time it also helps remind buyers that there is a human element involved and the deal isn’t just about numbers and paperwork.