Important Questions to Ask at a Buyer / Seller Meeting

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The first buyer / seller meeting is probably the most important step in the entire business purchasing process. Hopefully after this meeting, as a buyer, assuming that you came prepared and asked questions, you will know whether or not to continue to pursue the business or decide to go in a different direction. The seller will also likely decide if there is chemistry between the two of you. Since there usually is the need for a training and transition period and possibly seller financing, this chemistry is important so it is recommended to be well prepared for the first meeting to show that you are the right buyer for the business.

Below is a partial list to get you started in making sure that you come prepared to a buyer / seller meeting.

Tell me about your business?

How did you get started?

What services does your business provide?

What do you do everyday?

Why are you selling your business?

What is it that you like best and least about the business?

How long have you been considering selling your business?

What keeps you up at night about the business?

How much vacation do you take (not that you're looking for time off...rather, you want to know if they have adequate staff that will allow you time away)?

What are the last three year's sales and earnings?

Who are your biggest competitors?

What are your industry trends?

Is your market share growing, shrinking, or steady?

Have there been any significant changes in your marketplace?

What do you think I can do to increase sales and profits? Why are you not doing these things?

Ask the seller if he/she has copies of any trade publications. They're a great source for additional information.

How many employees do you have?

Who are the employees? Any manager in place? Are there any employees that are critical to the business?

Will you agree to a covenant not to compete?

Will the business sale include the transfer of real estate?

What are the details of the lease? How long? Any options? Do you anticipate any problems with the landlord assigning it to me or entering into a new lease?

Don't you have children to transfer your business to?

Are you the only owner?

Who knows that the business is for sale?

What are you going to do after the sale of your business?

How long will it take me to really learn this business?

How long can I count on you to train me after the sale?

What do you believe is the profile of the ideal buyer for this business?

Do you anticipate any problems with me getting credit from your suppliers?

Do any of your suppliers represent more than 20% of your purchases?

Do you have any customer concentration?

There are many questions beyond this partial list. However, this provides you with a head start in creating important questions that should be addressed in a buyer / seller meeting.

Written by: Kipp A. Krukowski, MBA, CBI, CEPA and Owner of Confidential Business Sale, Inc. (www.ConfidentialBusinessSale.com)