Your Business is Now Listed for Sale: What’s Next?

18 Nov Your Business is Now Listed for Sale: What’s Next?

Selling a business is an exciting milestone, but it also comes with complexities that may catch you off guard. At Sam Goldenberg & Associates, we collaborate closely with you to prepare a compelling business prospectus, provide a high-level overview of financial performance, and launch your listing across various online platforms. These critical first steps lay the foundation, but they’re just the beginning. Many prospective buyers will follow up with additional, detailed questions—and it’s surprising when they don’t.

Anticipating and addressing these questions demonstrates your transparency and deep understanding of your business. It’s a valuable opportunity not to be passed up! Keep in mind that Buyers aren’t just purchasing assets; they’re investing in the trust and confidence that your operation inspires. To help sustain momentum, we’ll assist you in preparing the documentation buyers are likely to request.

Here’s a closer look at the kinds of questions buyers ask.

Financial
Buyers often want to dig deeper than surface-level P&Ls, tax returns, and balance sheets. For instance:

• If your business experiences seasonal fluctuations, providing month-to-month P&Ls for the past few years can help buyers anticipate working capital needs and better plan for those cycles.
• Documenting trends in expenses, sales, and profitability can address concerns and set realistic expectations about the business’s performance.

Operational
A buyer’s confidence hinges on understanding how your business runs day-to-day. For example:

• If your business relies heavily on a key vendor, what types of reassurances are there that this relationship is stable and transferable? Is it based on annual sales, reputation, or other factors?
• Would the vendor be open to formalizing this arrangement?

Providing clarity on processes and back-up options for these vendors can alleviate concerns and highlight opportunities for future growth.

Relationships
Strong relationships are the backbone of any successful business, and buyers will often ask:

• Who are the key employees? What roles do they play, and how critical are they to daily operations?
• Who steps in when you’re unavailable?
• What standard operating procedures (SOPs) or training documentation will be available to help them confidently take the reins?

Buyers want to know they can sustain the relationships that make the business successful—and that there are systems in place will lay the groundwork for their long-term success.

Remember: Selling Your Business Is a Collaborative Process
Selling your business isn’t a “set it and forget it” process. Investing time to answer anticipated buyer questions will streamline the process, reduce stress, and promote trust. A little preparation can go a long way. By working together, we can help you showcase the value of your business and position it for a seamless transition to its new owner.