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Updated by Kari Baervahr on Aug 07, 2018
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How to Identify the Right Buyer for your Business

Being able to tell whether a buyer is a good or bad one is important for you to make the biggest profits from your business sale. Here's how to tell them apart.

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1. Buyer's motivation for acquisitions is usually growth.

Forms of growth can be geography, customers / contracts, technology, products, brand or people. The buyer is often 10 times bigger than the purchased company

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2. Specialize yourself.

When you focus on one thing, you can also engage the best and deliver a better product than the competition.

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3. Reduce the dependency of individual customers.

Max 15 of revenue from each customer can be a goal

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4. Create a formula for what you sell.

4. Create a formula for what you sell.

Customers buy easier when you rely on an established concept.

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5. Distances you from the business

Reduce dependence on you as an owner. Too many SMEs are entirely dependent on owners who are often also the general manager. 75% of majority shareholders of SMEs in Norway are also the general manager. This means that all power and knowledge are collected on one hand.

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6. Improve your cash flow by taking something up front and invoices through delivery.

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7. Historical numbers are important because they indicate the risks in the business.

A stable cash flow will enable the buyer to finance a lot of the purchase price in bank or the like. But remember: the buyer always buys the future potential that can be

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