Navigating how to sell your business can be a complex task. There are hundreds upon thousands of businesses for sale across the United States (and even abroad). These businesses come in all shapes and sizes from home-based, owner/operator companies, and franchise resales, to 200 employee construction businesses and multi-location salons. With so many options available for purchase, what are buyers actually looking for when they peruse business listings?
Of course, it depends on the buyer, but there are some key characteristics that buyers like to see within a business that make it attractive for purchase.
Absentee or Semi-Absentee Ownership. While there are buyers that want to buy into a job and work their business each and every day, typically we see buyers who want a sort of absentee ownership role. This is a business they don’t have to work every day, that can operate in the background with key managers in place.
Established Revenue. A business that has traction in the marketplace and an ability to grow further is very attractive to buyers.
Market Stability. We have all seen trends come and go from frozen yogurt businesses to the now popular paint and sip concepts, but the typical buyer is not interested in trends. They want market stability, and a business that can hold its own, even when the economy is on a down turn.
Reputation. The reputation of a business can make or break them, especially in the age of the Yelp review. Buyers don't like uncertainty and a well established business with a strong reputation can go a long way in identifying a sound business purchase opportunity.
Competition. Within certain industries, businesses are a dime a dozen. Meaning there could be a high level of competition, or the market is too saturated for those types of companies to b highly profitable. Buyers want to purchase businesses with potential for additional growth and development. Because of this, niche businesses can be a great opportunity, since they fill a hole in their market segment and have little competition.
At Transworld, we believe there is a buyer for every business, but there are certainly ways in which a seller can prepare their business to appeal to typical business buyers in the market. For more information on how Transworld - Rocky Mountain can support you in the business sale process, please visit our website or schedule a free consultation with one of our brokers today!
Rachael Holstein joined the Transworld Team in 2016 as Marketing Coordinator. Her working experience has been largely focused on Business Development and Marketing in the finance, architecture, property management, and information technology industries. A long time resident of Cleveland, Ohio, she attained her Undergrad from John Carroll University and a Master’s Degree in Global Interactions from Cleveland State University. She relocated to Denver in 2013 for a change of scenery and a bit of adventure.