Buyer Personalities
Business is about transactions. Beyond that, business is also about people. And people come in all different forms. As a result, the business world is full of variety.
When it comes to the business of selling businesses, you can come across A LOT of different people.
Jason and Ron from Websiteclosers.com have seen a lot of different buyers over the years. On today’s episode of Deal Closers - A Tech & Internet M&A Discussion, we’re talking about the different buyers you can come across when selling a company.
[01:55] The buyers you’re looking for in the deals of less than $10 million are the ones that:
- Are looking to buy the company;
- Have some professional expertise;
- Have experience with marketing and sales at a very high level.
[05:12] What roll-up companies are and what’s their advantage:
- Roll-up companies are the ones that actually do have a staff in place;
- They have already acquired companies;
- You’re not going to have to provide a lot of training to them.
[08:27] The best buyers are:
- The people who see the big picture;
- The ones who operate on intelligence, analysis, but also on instinct.
[09:16] The upfront homework buyers have to do before actually trying to acquire a company:
- They have to try and to get their personal finances in as good a position as possible so that when we start presenting them to lenders and sellers, they look attractive as an option, compared to someone else who might not have set themselves up properly.
[12:27] The things a broker has to know about a potential buyer:
- Who your buyer is;
- What his qualifications are;
- What he’s looking to do;
- What his mindset is.
[15:10] The ways you can afford a business:
- If you have a 401K you can lend off of that;
- If you have equity in your home, you can lend off of that;
- Cash in the bank is always good.
[17:33] Jason’s advice for potential buyers:
- Identify your target market;
- Identify your deal size;
- Go out and get SBA pre-qualified, if you’re going to do a deal below $5 million.