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What Do Buyers Look For In A Business For Sale?

what buyers are looking for in your business for sale.

When a person is looking to buy a business, there are various things they look for. Some buyers are looking for an extremely specific business. These buyers can be some of the best buyers because they may pay more if your business fits the specifications they are looking for. Effectively marketing your business for sale helps to attract the right buyers to your business.  To maximize effectiveness we need to provide them with the information they are looking for in a confidential manner.

Business Buyers Care About Your Business’s Industry

Whether you are buying a business or starting a business, you want it to be in an industry you are familiar with. The other reason a person would want to buy a specific business is to merge it with theirs. They would either be looking to purchase the same type of business as theirs or purchase a business that will cut out production costs for their company. No matter the reason, specifying your business’s niche will quickly focus on getting the right interested buyers.

Buyers look at a business's industry.

Buyers Care About Where Your Business Is Located

Many buyers do not want to move when purchasing a business. Additionally, business owners might look for a specific type of business at a certain location. For instance, a buyer might be looking for a transportation business located in Pennsylvania or Tennessee due to their optimal location for transporting goods.

The Price Of Your Business Can Interest Buyers

Buyers, especially frequent business buyers, are usually searching for a profitable sale of a business. This is why it is so important to get a business valuation to know the worth of your company. If the economy is down or your business is not in demand, it might be a good idea to lower the price of your business. Buyers are always balancing out the risk of a purchase. Lowering the price of your business also lowers the buyer’s risk. While we want to sell your business for the full price, we will recommend lowering the price of your business in certain scenarios.

The price of your business insterest buyers.

Buyers Look At A Business’s Annual Income

As a buyer balances out the risk of making a purchase, the annual income is the next major indicator of whether your business is worth the investment and risk of buying. A buyer wants to make an overall profit from purchasing your business. If the annual income does not pay off the business loan in a timeframe they see fit, it can be a major deterrent for purchasing your business.

This is why other factors are so important in selling your business. Rarely does selling your business come down to just the numbers. If your business is within their industry and can cut their primary business costs, they will see even more profitability in a vertical merger. Knowing what a buyer is looking for is so important. Knowing what your business has to offer can help you communicate and negotiate the sale of your business effectively.

A Business’s Marketing Strategy Can Interest Buyers

Marketing data on screen as a business asset.

A powerful website, branding, or general marketing presence can interest a business in purchasing your company. For instance, a large IT firm may be able to target an older demographic effectively but is unable to reach a younger demographic. Suddenly they find an IT company for sale that is targeting a younger group of people and startup businesses effectively with online marketing. This merger is extremely beneficial for the company that targets the older demographic because they will be able to reach a wider range of customers. Your business’s marketing is one way to increase the value of your business before you sell your company.

Buyers Love Businesses With Recurring Clients

Recurring clients at your business shows your company is a good investment for buyers. If your business structure shows a guarantee of return business, a buyer will be very interested in purchasing your company. For instance, environmental cleanup companies have a lot of contracts with different manufacturing and production companies. They will regularly go to those businesses and take environmental waste that those companies produce. If the environmental company has existing relationships with businesses as well as a transportation business to transport the waste to their facility, a business would be interested in purchasing your environmental company because they will not be starting at square one looking for clients.

Recurring clients help to sell a business.

Your Business’s Assets Are A Key Selling Point

A person interested in a specific business’s assets might be seeking out a liquidated business, but specific business assets can interest a buyer, especially if it is an asset or setup that other businesses do not have. Many buyers are interested in business assets that cannot easily be purchased but require time and development. For instance, technology or specific processes or training. These assets can become a key selling point that makes your business unique.

Something Unique About Your Business

Is there something unique about your business that your competition wishes they had? A unique aspect of your company is a major selling point. If businesses listed for sale only had their price, location, and industry, buyers would look at a list of 10 construction companies for sale and just buy the cheapest one. If one of those businesses listed something unique about their business, they would be much more likely to sell.

This is something we try to do at Synergy Business Brokers to attract interested buyers to your business. When we meet with you and your business to provide a confidential consultation, we want to know what makes your business unique. Ways past businesses we have sold were unique:

  • Manufacturing business patents
  • Unique and desirable location
  • A large amount of property
  • Explosive growth in a business
  • Recurring clients making up a majority of business
  • Businesses with large profit margins
  • Award-Winning Businesses
  • Environmentally friendly businesses
  • Employee Run Businesses
  • And many more

Sell Your Business Through A Professional Business Broker

Sell your company through Synergy Business Brokers. We specialize in specific industries and help sell your business as effectively as possible. Contact Synergy Business Brokers, a top business broker in the United States.

Contact Synergy Business Brokers

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