What a business broker wants to know from a prospective business buyer!
- How does a business broker qualify potential business buyers to establish their Bona Fides?
- How to verify if they are truly interested in buying the business advertised for sale.
Non-Disclosure or Confidentiality Agreement.
- There are 2 trains of thought in this process.
- Do you get the Non-Disclosure Agreement signed at the initial enquiry stage or after you have established their Bona Fides?
- Australian Business Sales in all cases has this done automatically as soon as the initial enquiry is received.
Assuming we know the business asking price, type, location any particular outcomes and or goals the seller wishes to achieve.
- We have experienced situations where the seller preferred all employees were retained, treated well, and that the new buyer would not relocate the business.
- The business seller is usually concerned about who buys the business.
- It has been proven, through our research, that sellers usually “hand pick” the final buyer to meet their needs, particularly if there are multiple buyers.
- In some cases, of course, there are sellers that are only concerned about the sales price and cash received at the end of the sale.
- Every case is unique in business sales.
- In all business sales it is difficult for us to provide minimal general information to the buyer without disclosing the specific business if we need to find out the following information.
Questions that need to be asked as part of the qualifying process. Questions 1
- Do you have any experience in this type of business?
- If they say yes, we need to then investigate further and gather more in depth detail as to their experience.
- Where, when, how long etc.
- We need specifics.
- Company and business details of previous experience.
- Google knows it all.
- This will help establishing the truth and if they are genuine buyers.
- We need to know if the Buyer is “REAL” as soon as possible to avoid wasting our valuable and precious time.
- How much liquid cash do they have on hand today?
- Can the buyer afford my business?
- We generally know how much money it will take to complete the sale.
- Can be borrowed against the business?
- Can they borrow against other assets?
- Why would we give a buyer further details of the business if they can’t afford it?
- A buyer may have to purchase, with a specific business. Stock, Plant and equipment, working capital, employee’s entitlements etc.
- We are entitled to ask for proof of funds before disclosing specific information on a business.
- Genuine Buyers will not usually object with this.
- Buyers who are dreamers and just information gatherers will object to these questions.
- Real buyers who have the money will not be afraid to prove it to you if the business interests them.
- Once we are satisfied that the prospective business buyer has proven their bona fides and we are satisfied then (with the seller’s approval) we will arrange a suitable time for the business inspection, usually at a time when the business is closed and there are no employees or customers at the business.
- We have to be discrete.
- Do yourself a favour, hire an experienced business broker to handle this for you.
- It is a process and time consuming to qualify buyers.
You run the business and we will sell it for you!
Call Australian Business Sales Corporation today on 1300 722 556
if you are serious about selling your business!