What should I consider in a buyer?

Deciding to sell your business is a very important decision, and one that should be taken thoughtfully. First and foremost, you should work with a respected buyer with a good reputation and one with whom you have developed a trusting and transparent relationship.  There are always issues that arise in deals that cannot be foreseen, and having a buyer who you can work through these issues helps ensure a smooth process. You want a company that has a reputation for doing what they say they will do, and also for behaving well post-closing.  You should ask for references from the buyer and also seek out your own independent references.

You should select a buyer that understands the industry, and has a track record of successfully buying businesses. Many buyers may express initial interest, but unless they have acquired similar businesses before, there is a risk that they cannot get to a closed transaction. And of course, make sure that they have the financial resources to close the transaction, including any debt financing they may be raising.

You should also understand whether the buyer has a role for you, and what they plan to do with your staff and location post-closing. It may be important for you to protect your staff, and you should make sure you understand what their intended approach is with respect to staff.