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ESSENTIAL QUESTIONS TO ASK WHEN BUYING A BUSINESS
Benchmark International
ESSENTIAL QUESTIONS TO ASK WHEN BUYING A BUSINESS
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Anyone looking to buy a business should do their due diligence, which means asking all the right questions in terms of the business’s finances, liabilities, potential synergies, customer relationships and key employees. Continue reading for the three most important factors to consider when looking to buy a business:
THE BUYER NEEDS TO U N D E R S TA N D W H Y C US TO M E R S ARE LOYAL TO THE BUSINESS T H AT T H E Y A R E B UY I N G S O T H E Y CAN CONTINUE TO SERVE THEM.
WHY NOW? It is important to understand the reason that the business owner wants to sell, and why they wish to sell it now. By asking these questions, the buyer will have a better understanding as to whether the business is a good purchase.
Potential buyers should know which employees are creating the most revenue for the business, which employees have built strong relationships with key customers, whether there are strong non-compete agreements for these particular employees should they leave, and whether they want to stay at the company. These questions will help the potential buyer to understand if the business will continue to thrive after the sale is complete.
W H AT I S T H E US P O F T H E BUSINESS? The buyer needs to understand why customers are loyal to the business that they are buying so they can continue to serve them.
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WHO ARE THE KEY EMPLOYEES?
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For further information about successful business sales, visit the Benchmark International blog.