Previously we looked at some common questions that buyers typically ask business owners in their initial “meet and greet” sessions. As you may recall, we focused on two key areas: questions pertaining to business risk and also those covering your personal motivations as a seller.
As with any budding relationship, the questions you need to ask are equally important to developing a solid partnership, so that a few months down the road, you can consummate a relationship that is win-win for both you and the buyer. Because, as our clients often tell me, at the end of the day, the offer that is accepted is sometimes NOT the largest or most financially lucrative to the seller; frequently other factors come into play that become even more important to the seller than simply how much they walk away with from the transaction.
This is why it is really important for you to spend time with the buyer and his/her team, delving into their background(s) and motivations. Here are a few of our clients that have talked to us about how other issues became paramount in the end of the deal:
One of the common themes I hear from nearly every client that I meet with over the years post close is this: it was important that I could work with the buyer and it was vital that their plans for the future maintained my company’s legacy.
In order to reach that level of trust, you have to ask the right questions even in your first meetings with any buyer(s). So, here are some queries you can use to get to know your potential buyers:
This is just a small sample and as you can see, many of these questions overlap and that is OK, because in reality as you start to ask questions, if you listen well, you will even have more questions develop as the meeting continues. And as you go through your queries, realize that what you are really doing is having a conversation with a person and/or a team that you will potentially be working very, very closely with for several months. Ultimately, you have to be sure that your personality and the buyer’s are a good fit.
As Brad Hennrich said in the video above, it is vital that you can see yourself developing a good working relationship with your buyer, even if you are not going to be retained post sale. The amount of time you will be spending with him or her over the months before closing will be incredible. Nothing can be worse than beginning to determine that you simply cannot get along with your potential buyer a few months before close.
Spend time asking good questions and most importantly, as we mentioned a few weeks ago, determine your personal motivations as well. Be sure you are truly a committed seller even before your first meeting(s). This will go a long way towards creating a long-term, trusting relationship.
If you are interested in learning more about the work Generational Group does in helping our clients find and develop the optimal relationship with a buyer, give us a call at 972-232-1121 or visit our website, provide us with your contact information and we will be in touch.
By Carl Doerksen, Director of Corporate Development at Generational Equity.
© 2017 Generational Equity, LLC. All Rights Reserved.
The information we learn from customers helps us personalize and continually improve your experience at gencm.com. Here are the types of information we gather.
Information You Give Us: We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice. Our computer system protects personal information using advanced firewall technology.
Information from Other Sources: For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Capital Markets LLC may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Capital Markets, L.L.C. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Capital Markets LLC at is office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
INFORMATION ON THIS WEB SITE IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO THE ABOVE EXCLUSION MAY NOT APPLY TO YOU.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Capital Markets may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Capital Markets does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Capital Markets will be deemed NOT to be confidential. By sending Generational Capital Markets any information or material, you grant Generational Capital Markets an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Capital Markets is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Information Generational Capital Markets publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Capital Markets intends to announce such products, programs or services in your country. Consult a Generational Capital Markets representative for information regarding the products, programs and services which may be available to you.
Generational Capital Markets makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Capital Markets web site, please understand that it is independent from Generational Capital Markets, and that Generational Capital Markets has no control over the content on that web site. In addition, a link to a non-Generational Capital Markets web site does not mean that Generational Capital Markets endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Capital Markets BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Furthermore, all information contained within this website is the property of Generational Capital Markets.
Honored to win Investment Banking Firm of the Year 3 years running.
Over 50 awards and counting.
Sign up to receive regular email updates, industry-leading insights and details on complimentary M&A executive conferences in your area from our award-winning team
Success, you have been added to our list.