What if someone wants to buy my business and I’m not represented by a business broker?
If you’re approached by a potential buyer and you’re not yet represented by a Certified Business Broker, here are some things to consider:
- Will the potential buyer protect the fact that you’re thinking of selling your business? It is not in your best interest to allow your competitors, customers, employees, or vendors to know that you are contemplating a sale. Any disturbance in business as usual (e.g., a key manager leaves because he/she senses a change in ownership is coming) could jeopardize your final selling price.
- Are you sure your potential buyer isn’t engaging in conversation to simply “borrow” your processes, technologies and competitive intellectual information to apply to their own business venture?
- Some buyers focus on businesses that are not yet on the market because they know that you aren’t aware of the true market value of your business. The buyer is hoping for a price lower than what the business would bring with competitive bidders. Do you know the market value of your business?
If you are approached by an unsolicited buyer, your first step should be to get a valuation of your business by a qualified business valuator and engage a skilled Certified Business Broker to protect your confidentially and your best interests.
Everything you do with and say to a potential buyer should be considered part of a strategic negotiating plan. We can help you create one.