What Buyers Look for in a Business

Transcript

Transworld Business Advisors receive thousands of buyers from around the world every year who are looking to buy a business. In this episode, Andry and Jessica talk about specifically the individual buyers seeking businesses and what exactly are they looking for. The typical profile is somebody who has worked for a corporation for ten to twenty years, has dreamed of buying a business, saved money for their retirement, and now are looking for income replacement; they are looking to buy themselves a job but within a business that they can grow.

If you are listening to this show as a business seller, the information you will hear will help you position your business to sell, and if you are a buyer, you will get ways to carve out some competitive advantage for yourself and have better chances of winning a deal.

Key Takeaways

[3:13] Buyers look for a business with established revenue.

[4:42] Keep good books and records.

[5:10] Buyers are looking to determine what the owner’s engagement in the business is.

[9:12] Buyers look for stability in a changing market, a business that is recession-resistant.

[11:30] People hate change.

[11:49] The reputation of a business is easy to track.

[13:55] The type of business is a priority to buyers.

[15:49] What to do if you are thinking of franchising your business.

[16:13] Buyers are looking for businesses that have limited competition.

[18:56] Buyers are looking to leverage their capital.

[22:06] Buyers look for businesses that have professional advisors.

[27:05] Deal of the week: Joshua Sagman (South Florida). Deal in Puerto Rico. Consulting company. A complex deal that was solved creatively. The owner stayed on board for the transitional period. Sold for $199,000 in three payments. The owner benefits were $400,000 per year.

[32:23] Listing of the week: Carey Davis (New York) Major player in the wholesale importer and distributor of products grown in farms and fields around the country and imported from South America. SDE: $2,250,000. Ready to get in the organic market. The asking price is $13.9 million. Financing is available.

Call us — 888-711-9018

Email us [email protected]

Contact Joshua Sagman at [email protected] or call 561-707-8986

Contact Carey Davis at [email protected] or call 646-707-4559

Mentioned in This Episode

• The Deal Board Podcast
• Transworld Business Advisors
• United Franchise Group
• Transworld on LinkedIn
• Transworld on Facebook