Business Buyer Qualification
During the marketing phase, numerous potential buyers may enquire about your business. Many may be unsuitable. Business buyer qualification ensures that confidentiality is maintained and keeps the process moving forward without wasting everyone’s time on unsuitable buyers.
A potential buyer will only receive detailed information about your business after the buyer has:
- Signed our confidentiality agreement and understands the ramifications of breaking it
- Shown a solid financial position
- Demonstrated the competency required to run a business
- Met your criteria for new ownership
- Proven not to be a competitor or industry player looking for information
- In many cases, received your approval to disclose the name of your business and receive the confidential information
Our business buyer qualification process includes interviewing potential buyers to ensure they have the resources to carry out the transaction. The creation of the buyer list is done in stages, with the least risky buyers approached first. This helps ensure confidentiality is protected.
Offers must meet basic criteria, including price and terms, timelines, and clearly laid out expectations. We then analyze the offers and make our recommendation. Our recommendation is not based solely on price, as other factors must be considered, including:
- Ability to close
- Ability to work with the seller
- Long-term goals
- Staff considerations (if important to seller)
Typically, we don’t allow potential buyers more than one meeting with the seller prior to making an offer. Most information is provided in the Confidential Information Memorandum so you don’t have to worry about spending a lot of time with potential buyers.
Once an offer has been made and accepted, our work with the buyer continues. Throughout the remaining phases of the sale process, our team may assist the buyer in identifying creative financing options, obtaining necessary financing, and managing the stress inherent in making a significant investment.
As we manage the final phases of a project—Negotiation and Closing—we also help balance the needs and goals of the buyer with your own in order to bring about a fair deal acceptable to everyone.
As your advisor, it’s our duty to maintain control of the situation at all times. If a buyer tries to take over management of the final phases, we will inform them that our position is not negotiable and, if need be, we will discontinue working with them.