Business Brokers - Sell Business - Business Sales and Acquisitions - SunbeltNE

If you are looking to sell your existing business, you need to find the right buyer. And in order to find the right person to buy your business, you need to get into the buyer’s mindset in order to figure out what factors influence their buying decision. Such an insight will help you best customize your selling pitch accordingly. But how do you figure out what a buyer is thinking while buying a business or franchise? What factors influence him/her in making the decision? Which are the factors you need to be aware of in order to convince the buyer to buy your business? The answer to these questions is important in making sure you can successfully sell a business to the right buyer.

Some of the common factors that influence the buyers to buy a business are:

• Entry into a new market: an acquisition of your business may be a means to enter the market for the buyer. For example, buying a business in the restaurant industry may be a way for a food manufacturer to get into the main street business.
  
  
• Elimination of competition: if you are a competitor who takes away a significant value of business from the buyer, he/she might decide to buy the business from you. That way, for the buyer, another business from the same industry can be integrated into the existing business as well as the competition can be eliminated.
  
  
• Merger and acquisition: if expansion is on the agenda for the business, the buyer might look for merger and acquisition opportunities by buying a business. This way, the market share of the buyer will increase and expansion can be possible.
  
  
• Increasing the value of the original business: if your business is on the same lines of the buyer’s existing business, he might want to buy your business to increase the value of his own business.
  
  
• To fill gaps in products or services: in case your business is well established, has a brand name or offers a better product or service offering than the buyer’s own business, he/she might consider buying your business to fill gaps in their own products or services.
  
  
• To add intellectual or physical property to their rooster: if you possess a valued intellectual or physical property, it might become an attraction for the buyer. This way, the buyer’s business value as well as market offering is liable to increase.
  
  
• Company reputation and brand name: most buyers consider a well established business a good investment. So if your company has experience, is well respected and has a brand name, it will become a major pull and will be a convincing factor to buy your business.
  

The factors mentioned above cover the most common reasons for buyers to buy a business. However, in case of individuals, there might be other factors which lead to the decision e.g. emotional factors, finance etc. These factors differ from person to person and are very individualized. You can consult with a professional business broker for guidance for finding a right buyer and get the right value for your business.

You need to be aware of the factors mentioned above when you are on the lookout for a buyer for selling a business. If you are successful in getting into the mindset of the prospective buyers, you will be able to better understand them as well as their buying requirements and will be able to convince them to buy your business.