Buyer to Seller Questions
What Buyers Want To Know
In preparing to sell your business, it is important to know the types of questions a potential buyer will ask. Below is a sampling of typical questions asked by buyers when researching possible acquisition companies. A more detailed list of questions is available to our clients.
General
- What product or service does the business market and sell?
- What needs does the company satisfy?
- What is the form of the organization?
- Who are the owners and what percentage do they own?
- How long has the business been in business?
- How long have the present owners owned the business?
- Will you provide company and product literature?
Financial
- What are the sales and profits for the company for the prior three years?
- What is the debt situation?
- What investment capital is required to grow the business?
Market Related
- What are the obstacles and advantages experienced by the company?
- What methods does the company use to sell and distribute products and services?
- Who are the typical customers?
- How can the business grow?
Purchase Related
- What is the list price?
- How much is the down payment?
- How much income can the new owner expect?
- Why is the seller selling?
- Will the owner finance the sale?
- Will the owner stay and work with the buyer?
- Will the tax returns support the owner’s records?