Whether the buyer is an investor, a strategic acquirer or an individual buying their first company, they ask a remarkably similar set of questions. Answer them well before you list, and you will see stronger offers.
1. Clean, credible financials
Three years of profit and loss statements and tax returns that tell the same story. Clear add-backs. A balance sheet without surprises. Buyers discount anything they cannot verify, and lenders will not lend against it.
2. A business that runs without the owner
Who manages the crews? Who holds the key customer relationships? Who knows how to price a job? The more of those answers point to someone other than you, the more a buyer will pay.
3. Diversified, loyal customers
Buyers look for a broad base, repeat business and low churn. If one customer represents a large share of revenue, expect questions and possibly an earn-out tied to keeping that account.
4. A team that will stay
Experienced employees are one of the most valuable assets in a sale. Buyers want to know that key people will remain after closing. Retention plans and a clear organizational chart help.
5. Room to grow
Buyers pay for the future. Show them untapped markets, services you have not offered, pricing you have not raised or capacity you have not used. A credible growth story makes a higher multiple easier to justify.
What this means for sellers
None of these require a dramatic overhaul. Most come down to organization, delegation and documentation, and most can be improved in the months before a sale. That is what seller preparation is for.
Want a buyer's-eye review of your business? Our seller preparation and coaching starts with exactly these questions.
