Somewhere out there, there’s an ideal buyer for your business. A good Broker will find the right buyer for your business. That’s what brokers do; they find the right buyer for your company at the right time. Here are some of the things we look for. 

The right buyer will be:

• Positive and optimistic. With fluctuations in the economy or other uncertainties, entrepreneurs must be able to balance optimism with reality. A buyer who is negative from the beginning can sometimes signal a “red flag.”

• Realistic. They may love the business, but they also understand that every business has some issues. They understand and believe that there’s potential to grow, but it may take time and capital to get there.

• Motivated. They are ready to move forward to acquire a business, and they want to get the deal done as quickly (and cleanly) as possible. Buyers without a sense of urgency seldom close deals.

• Financially fit. They have the means to make a good offer on the business and they are open about their financial position. Based on my experience, when a buyer hesitates to share financial information or commit funds upfront, it can indicate they lack the necessary resources to complete the transaction.

• Flexible. They are reasonable about the terms and conditions for the sale; they believe that both parties deserve to feel good about the deal. If someone comes in determined to “win” a deal, it’s a sign they’re not the right fit for most owners (and most brokers).

• Experienced in business; it’s a bonus (but not necessary) for them to have industry experience. A well-run and profitable business will always attract entrepreneurs. It’s helpful if they have a passion for and an understanding of the industry, but I’ve seen successful business people take on companies that are completely new to them. PE firms are a great example of this; they look for profitability and growth potential; they can always hire someone competent to run the day-to-day operations. 

Here are some red flags that tell me a buyer is not going to be a good fit.

• Indecisiveness. A buyer who’s not sure what they want will not recognize a good opportunity when it appears. They’ll procrastinate, dither, and set terms that are sure to be deal-killers. 

• Not being responsive. When a buyer doesn’t return calls, is always unavailable, or responds in a way that’s clearly not responsive. A buyer who is interested in a business will do whatever it takes to make the deal happen.

• Paying too much attention to things that don’t matter. There’s a big difference between being a diligent researcher and a nitpicker. If a buyer gets stuck on something that won’t make a material difference to the deal (or whose cost is so small as to be inconsequential), it’s a sign that they’re going to be difficult through the entire negotiation. I believe in moving on to a buyer whose priorities make more sense.

• Someone you can’t get to know, like, or trust. You don’t need to become best friends to close a deal, but trust is essential in any business transaction. When the buyer and seller don’t get along, the process becomes far more challenging—especially over the months it can take to finalize the sale.

As a broker, my role is to keep communication flowing, manage expectations, and navigate the inevitable emotions that come with selling or buying a business. But I’ve encountered situations that would test anyone’s patience.

Fortunately, every great business will attract at least one serious buyer who is both financially qualified and operating in good faith. When a deal starts to feel like an uphill battle due to personality clashes or unrealistic demands, it’s often best to pivot and focus on the right buyer—the one who truly values the opportunity and is ready to move forward.

 Our Goal: Securing Offers Within 60 Days. 

Our commitment to you is the successful sale of your business so you can transition with confidence to your next adventure.

If I can help you understand the value of your company, click here for a complimentary and confidential opinion of value.