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Be sure your broker is with you at the meeting.
Never meet with buyer alone as you may step put yourself at a disadvantage,
for instance, the buyer may make you a verbal offer to try to feel you out
before he makes it in writing.
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Discuss the good points of your business and its potential.
Good points always enhance the desirability of your business. Do not
exaggerate or overemphasize on an issue that may make the impression of
disproportionate story.
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Discuss the bad points of your business and possible solutions.
Bad points, must be minimized but told completely and honestly. Buyers will
understand and will not be discourage if you are honest and give them your
possible ways to overcome those obstacles
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Explain the operation of your business, concentrate on its unique features,
and suggest areas for growth. While it is not necessary to provide a detail
and exhaustive overview of the business, processes, or operation during the
first couple of meetings, provide the buyer with a reasonable explanation of
the overall business operations. Your broker will guide you through this
process and provide you with good advice on what and how to concisely convey
the necessary information without revealing confidential information or
potentially discouraging issues during this stage of the negotiations.
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Invite questions from the buyer and be open
and honest with your answers. Ask questions and make sure that the buyer is
capable of handling all aspects of the business as well or better than you.
Measure the buyer's level of interest, and try to find out what makes him
uncomfortable about your business.
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Be sure to explain your reason for sale in a positive manner.
Most buyers will dwell on this issue to make sure that the reason is a
legitimate as well as credible.
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Brokerage fees, price and terms shouldn't be discussed, that's our job!
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Your financial records should either be presented in the presence of your broker or by the broker.
Do not provide any documents or confidential information directly to the
buyer.
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Do not allow the buyer to contact
you directly; always through your broker. this will prevent the buyer from
probing with questions outside of the scope of the Non-Disclosure Agreement or
confidentiality agreements. You hired a broker to help you sell the business,
not just to find you a buyer and then for you to take over. Most deals fall
through due to the seller and/or the buyer leaving the broker out of the loop!
