Rogerson Kenny Business Accountants Melbourne

Buyer and Seller Perspectives

To make a  successful sale, vendors should try to view the process from the buyer's position, and try to anticipate the questions that may be likely to come your way. If you can anticipate the questions with great answers, you will make the potential buyers feel at ease right away. After all, they are asking the questions to try an uncover why your selling, find out what's wrong with the business etc.

From the seller's perspective

• How will I get the best price for my business?
• How will I let the market place know my business is for sale?
• How much information should I disclose to prospective buyers?
• What is my business worth?
• What is my minimum price I will consider?
• What is it I want from this sale?

From the purchaser's perspective

• What type of business do I want to buy?
• How will I find the right business for me?
• Should I buy this business?
• Is it too risky?
• Is everything being disclosed?
• Do I feel comfortable about what I am hearing? Are the claims true?
• How much information about the business can I get? (the more the better - at least 3 years of proper financials, talk to suppliers, customers, staff)
• What is the business worth?
• What is the maximum price I should offer?

Know your Buyers

Buyers buy businesses for different reasons, from all walks of life. Typically a buyer wants the ability to earn a decent living, along with the freedom that can be associated with owning a business.
Alternatively, a buyer could be an investor, so some key financial indicators may be all they are looking at - as they want a particular return on their investment from day 1.
A buyer may also be a competitor looking to expand their market share within your industry. You may actually approach a competitor who you feel would be a good fit with your business to see if their is any interest in expending. If you have a few competitors who see your business as the next step in their expending operation, the competition for your business may actually drive up your price.
Knowing who is likely to buy your business will help your position your business for sale. Good Luck! Please take advantage of our free initial consultation to discuss any matter you wish.

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