One of the
greatest opportunities you will face when selling your business
will be the barrage of questions during the various
management presentations you'll be doing for potential acquirers.
Be prepared for some "interrogation" on many facets of your
operations. Of course every meeting will be different,
and here are 8 of the most common questions you can expect
when you're in the hot seat:
1. Why do you want to sell your
It's a "slippery
slope" question because if your business truly does have a bright
future and you want the buyer to believe that's the case-the
obvious question is: "Why do you want to sell it, and why
do you want to sell it now?"
2. What is your cost per new customer
acquirer wants to find out if you have a repeatable, duplicable,
predictable, economical and scalable formula for finding new
customers and clients.
3. What is your market penetration
with an eye to future growth, is trying to understand how big
the potential market is for your product or service and what
part of the field remains "untouched" and can potentially be
4. Who are the critical members of your
wants to understand the breadth and depth of your team and
determine specifically which members need to be motivated and
retained post-purchase. What is each member's knowledge
and skills, experience, behaviour style, workplace motivators and
personal development plans?
5. Who buys what you sell?
buyers will be searching for any possible synergies between what
you sell and what they sell. The more you know about your
customer demographics, the better the buyer will be able to assess
the strategic fit. If your customers are other businesses, a buyer
will want to know what functional role (e.g., training manager, VP
of sales and marketing) buys your product or service. At what
levels does your company's personnel interact with your best
"clients" - your top 20%?
6. How do you make what you
This question is
asked in an effort to size up the uniqueness of your formula for
creating your product or service. Potential buyers want to know
if you have any proprietary systems or processes that would
be hard for a competitor to replicate. For various reasons, they
will also want to understand if the creation of your product or
service is dependent on any one person.
7. What makes your product truly
A buyer is trying
to understand how big the "moat" is around your business and
what kind of protection it offers from competitors who may decide
to compete with you in the future. What have you done to safeguard
yourself against the competition? What is your truly "Unique
8. Can you describe your back-office
Most buyers will
try to understand how easily they can integrate your back office
into their operation. They'll want to know what bookkeeping and
billing software you use, how customers pay, and how you pay
Of course this
is not an exhaustive list, a great "Due Diligence" list will have
more than a 100 questions! Having answers to these 8 is a
perfect start when you're preparing to represent your company
to your potential buyers.
you curious about how "Sellable" your company
and what you would need to tweak it
sell when you're ready? Then it's time to get
Score" via the questionnaire
takes about thirteen minutes
and your responses are kept confidential.
If your business
needs help becoming more valuable or you just want to make 2014
Your Best Year Ever, give me a call. I am here to help!
Business Coach and Sellability Advisor
Business Coaching Excellence
toll free: 1-877-223-0622