How to Vet Business Buyers
We invite your contributions to this webpage; it will feature some of the ways buyers abuse sellers of small and midsize companies.
Clinton Lee, from London, is the first to contribute. (Few people are as correctly outspoken as is Clinton. He tells it like it is!) We excerpt, below, part of what appears on his website. Follow the link, below, for more revelations.
How to Tell the Real Players from the Time Wasters!
When buyers approach you to buy your business, all may not be what it seems.
There are several “internet courses” being heavily marketed purporting to teach people how to buy established and profitable businesses for £1 (or 100% “seller financing”). The aim is to get business owners to hand their businesses over in exchange for nothing more than a piece of paper promising to pay the agreed price but only out of future profits.
What does that mean for you? It means that there are thousands of “buyers” out there who don’t have two pennies to rub against each other but have designs on acquiring your business.
In Texas there’s an apt expression to describe these folk. They are all hat, no cattle.
Another Type of Buyer to Avoid
The above “buyers” are a nuisance. They’ll sap your time and energy. Getting involved with them loses you good opportunities with other buyers.
But there’s another type of buyer you want to avoid as well – the tyre kicker. He’ll sign your NDA, ask all the right questions, play the part of a buyer. But he’s only after information.
He wants to start his own business and he’s looking for ideas, tips, contacts, information.
He has no interest in buying your business, but you won’t know that till he pulls out at the last minute.
In either case these “fake” buyers will waste your time and frustrate your efforts to sell your business for a fair price. They represent other risks too!
- Ted Leverette interjects: We’ve seen lots of “buyers” shilling for the business seller’s competition. Other “buyers” discover from too-willing-to-share naive sellers too much confidential information about the company for sale and its industry. And then they purchase a competitor. And then they use their insight to become a stronger competitor.
Sellers Should Ask 10 Vital Questions
Click here to email Ted Leverette the title and its online link to what’s posted online so we can repost it here. You can also share with us what you’ve seen re seller abuse. (Please no marketing pitches.)
Ted J. Leverette, The Original Business Buyer Advocate ® Since the 1970s.
“Partner” On-Call Network, LLC