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.
Below are some of the reasons for sale that business buyers in Orlando prefer to hear:
- Heath issues (Sickness of the owner or their close family)
- Family issues (Divorce, not enough time with family, late working hours or too many working hours
- Relocation (Seller is moving either due to job options or other options)
- Retirement (This is the number one answer most business buyers want to hear however in Central Florida most sales are due to reasons that are more pressing).
These are some answers that sellers give for wanting to sell a business. They are not always what business buyers in Orlando want to hear but it is always good to be honest. If a seller is selling because they are burnt out from the business, than they should mention that and also list the reasons why. The burnt out reason might be due to some of the other issues such as family and health. There are also times when sellers are looking to sell a business because they feel the business is too much for them to take on or the distance is too far. These are also valid answers as it is always best to give buyers the most pertinent answers leading a seller wanting to sell their business.
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It is important for sellers to put some thought into why they are selling because business buyers use that as part of their business evaluation strategy. If a business owner says that they are putting their business on the market just to test the market, most buyers will not be as favorable when they evaluate their likes and dislikes on a business.
If you or someone you know is thinking about selling their business in the Orlando or Central Florida area call the business brokers at Crowne Atlantic Properties. Our number is 407-478-4101.
Other articles on selling businesses in the Central Florida, Orlando, Dr. Phillips and Winter Park area that may interest you:
The Most Important Tip When Selling A Business