If you’re thinking about selling your business in Chicago or greater Illinois, it’s essential to know the questions business buyers will want answers to. For example, one of the more obvious questions is: “If this is such a good business, why is it for sale?”
Answering this question appropriately could be the key to making a sale (or losing one). If you give a vague answer, buyers may assume the worst and stop showing interest in your business. If you have owned your business for 10-15 years and are just ready for something new, buyers will likely understand. However, if you have only owned the business for a few years or less, that may raise some red flags to buyers of why you want to sell, so be careful how you approach this question.
A common reason for selling is because of health issues, and if that’s the case, it’s fine to be open about that with potential buyers, so they have a complete understanding of your reasoning. The worst thing you can do as a seller is giving vague answers or no answers, as buyers will tend to see that as a red flag and potentially walk away. Honesty is always the best policy.
Navigating selling your business or company can be challenging if you’re trying to do it alone, which is why retaining a business broker or intermediary may be extremely useful. Business transaction professionals have experience with all types of business opportunities, dealing with buyers and sellers, what information needs to be provided and have a handle on the entire business sale preparation and process from analysis to closing on the sale.
One of the most valuable insights a business broker can offer is how to address buyer questions, such as:
Why should I buy a business rather than starting my own?
How are businesses priced?
What does it take to be successful?
How long has the business been in business?
How long has the present owner owned the business?
How much money is the business making?
Are the books and records readily available?
Will the new owner help me learn the business?
These and many other questions are ones that business brokers and M & A professionals here at ABA deal with every day, equipping them to help you prepare honest and valuable answers. So if you’re interested in hiring a business broker in Chicago, the Chicago Suburbs, or the State of Illinois to help you sell your business or consult on an exit strategy, contact us here or schedule a free consultation by selecting a date and time that work best for you.
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