What Makes Your Business an Ideal Purchase?

What Makes Your Business an Ideal Purchase?

While all buyers are different, there are a number of factors that make a business an ideal purchase, buyer preferences aside. As a seller, you can keep these factors in mind to help move the needle for a prospective buyer. The considerations that follow will provide some great insight into what a buyer might be looking for.


Established Revenue & Profitability: This shows stability and traction in the marketplace and says to the buyer, “This business will be a sound financial decision.” This is especially important for buyers looking to purchase a job or those accustomed to a certain lifestyle.

 

Owner Engagement: The amount of time a business owner spends managing and operating their business is a huge factor for a prospective buyer. As you can imagine, any business that essentially runs itself will be a hit with buyers! That being said, this factor is two-fold. A business that can be run owner absentee is great, but it also shows that the business can easily transition from one owner to the next without much change to operations or profitability.

 

Industry & Market Stability: A business that is recession resistant, such as a liquor store or funeral home, makes an ideal purchase, because the buyer does not have to worry that their customers will fade with the passage of time. While all industries certainly experience periods of growth and depression, buyers are more likely to steer clear of trendy and/or dying industries.

 

Organization & Operational Structure: Imagine walking into a home built in the 70’s - ugly wallpaper, chartreuse cabinets and parquet flooring. From a structural standpoint, however, the home has good bones and a sturdy foundation, so it could make a good purchase. The same goes for a business - it can have any number of “imperfections” but if it has solid financial records, well-documented processes, clean tax records and trained employees than the “imperfections” can be dealt with.

 

Reputation: I bet your home community has a go to coffee shop or you know a contractor that everyone on your block uses - that is good reputation! A business that has a positive industry reputation or a 15-year history serving the local community is going to attract buyers. A good reputation says stability, customer base, and a need for that business, making it an ideal purchase.


These are just a few of the factors buyers consider when identifying a business for purchase. If your business embodies these factors, than it is well on its way to matching with a suitable buyer. If your business could use some additional attention in attracting buyers, we would like to invite you to review our Prep to Sell services or speak with a broker today regarding the sale of your business!

 

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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.

 

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