Selling Businesses: The Needs of the Buyer and Seller
When it comes to changing the hands of ownership for a company, a lot of needs and wants come into play, and everybody needs compromises and promises from the parties to ensure that everyone’s wishes are met. Looking into the brains of the buyer and the seller of a business will help bring an understanding for how a business transaction meshes together from outside the box. This perspective will make those wishing to buy businesses more prepared on what they need to look for and offer, and sellers aware of the expectations and needs that their businesses need to meet in order to attract buyers.
The buyer needs profit. A basic concept, but it is very important to understand what a buyer is looking for when they are evaluating a business. Being a profitable business to one person doesn’t necessarily mean that another will find it equally profitable. To fix this, get an understanding for what the buyer is looking for in terms of a well-running business, and be aware of then when negotiating a price. Another focus that buyers look for is the company’s ability to improve and step-up operations. While there will be the occasional buyer wanting to simply become the owner of a fruitful business, many others will be targeting the sale of ownership in order to advance it and create a larger company.
The seller, however, has three main things that need to be accounted for. Paul Olsen, a professional business broker and owner of Company Brokers LLC uses these three needs of the seller when working negotiations out for his clients. The first is obvious, and that is the business being sold at the highest amount as quickly as possible. The second focuses around the seller’s need for it to be under the best terms, and the third and most substantial is that the buyer holds a genuine interest in the company’s success. With these three points his company has helped sell over 200 companies in the Denver area.