Selling Your Business: How Important is the Buyer?
Successfully selling your business is a full-time job. While finding a buyer is essential, determining that a buyer is qualified, willing and able to purchase your business is another matter. Convincing the buyer to buy your business through careful negotiation, due diligence, financing, deal structure, funding and closing is the value that a business broker brings to the transaction. A former client said afterward, “At first, I didn’t think I needed a business broker but after going through this process, I realized that the transaction wouldn’t have happened if you weren’t involved”. If your business is priced right, has adequate cash flow to service the acquisition debt, and you are willing to finance a portion of the goodwill , then finding a qualified buyer is usually not a challenge . This is especially true if you, as seller, have business Seller’s Discretionary Earnings (SDE) in the six-figure range. (Remember: Discretionary earnings are the sum of net profit + dep