Business buyers are always on the lookout for a good purchasing opportunity. Many are even willing to express their interest in buying a business, even if the owner had no previous intentions to sell. When these buyers present these unexpected offers, business owners can get caught off-guard and find themselves in an ill-prepared state to further discuss the proposal seriously. So, as an owner yourself, what should you do in case you ever run into business buyers that present you an unsolicited offer to purchase your business? Here are some tips on how to prepare yourself should this situation happen to you.
Establish Your Priority
Don’t let the thought of business buyers willing to make you an offer let you believe that their proposition is worth further consideration. Regardless of the fact that most initial offers are lower to leave room for negotiations, you need to consider whether you want to exit your business in the first place. Before you decide to invest time, energy, and other resources into researching the offer, you must determine if you would have been okay with the thought of selling your business had this offer not come up. From the get-go, you can decide whether you want to pursue the path to sell your business or focus on your business operations — which was probably doing well to start. More importantly, don’t get distracted by an offer to purchase your business that the day-to-day operations suffer due to your lack of attention.
Know Your Business’s Value
You should periodically have your business value reviewed so you can have an accurate understanding as to what your business is worth. In a situation where business buyers present you with a proposal to acquire your business, you can decide pretty quickly if an offer they are making falls far below your business’s value. Regardless, it remains a good practice to stay informed on one’s business value to gauge how well a business performance is going from time to time.
Protect Your Business With Confidentiality Agreement
Don’t let business buyers dictate the terms of the sale just because they are the first to express their interest. Get in touch with a business broker and have interested buyers sign a confidentiality agreement before proceeding with the sale. If the deal does not go through because you uncover dissatisfactory terms and conditions, you want to keep your business information private and protected. Also, this move can allow you to set the terms for further entertainment of an offer. The due diligence process would only continue if you believe the buyer is willing to take your terms seriously.
Sell With Atlantic Business Brokerage, Inc.
At Atlantic Business Brokerage, our mission is quite simple; we help sellers sell businesses, and buyers buy businesses! Over the past 30 years, ABBI has facilitated the sale of countless commercial properties, businesses, and franchised locations. With our unparalleled knowledge of the business purchase and sale industry and our network of contacts, we offer services to both buyers and sellers that no other brokerage firm can match.