I hear it said over and over, IF I am going to finance the sale of my business “How Do I Know if They Have the Experience to Run the Business?” This particular reason for not seller financing your business can be asked in a number of different ways but the message is virtually the same: how can I be sure I’ve found the right buyer for the right company at the right time?

One resounding way in which I hear this same complaint translated sounds a lot like, “I don’t know what ‘that’ guy is going to do to my company after the sale.” Well, again, this concern can certainly be mitigated by paying closer attention to how exactly you find the right buyer.

If you’re not being very discriminating during your screening process then, yes, I can agree with this statement (to a certain extent) – particularly if you are selling the company to “Joe Bob,” You know….Joe, the customer or employee who keeps making comments pertaining to the fact that he wishes he could own “a company like yours” one day.

But with an investment like this, you wouldn’t dare be so indiscriminate with your buyers, now would you?

Getting Paid Is More Important Than Selling Price

There are ways to make sure you find the right buyer for the right company at the right time. And the way we overcome this issue every time is by doing a good job when it comes to due diligence by scouting out the right buyer for your company “The RIGHT Company”. Candidly speaking, even if we are being mercenary, you are looking for much more than just the buyer that is the highest bidder for your business!

There is much more to selling a business than the total price; anyone can offer big numbers in an offer to purchase and, perhaps, even back them up (for a little while). The real brass ring for anyone seller financing their business is, of course, actually GETTING PAID! Not just getting paid today but tomorrow and through the term of the loan.

It doesn’t matter if you get $10 million for your $2 million business or $100 million for your $20 million company. If you will never get paid a dime of that money, what difference does the selling price make? (Well, besides the bragging rights while playing golf with your buddies or having coffee with friends, that is.)

At the end of the day, it’s all about getting paid. Therefore, you need to make sure that you are using a reputable intermediary or business brokerage professional to ensure that you have not only a qualified buyer but one who is committed to paying you throughout the term of the commitment.

You’ll need an intermediary or business brokerage firm, for instance, that is not just out for the one-time commission but is particular about the buyer that they attract and has a history of doing so successfully for his or her clientele – one that is discriminating about who they even talk to about your business.

Customer Relations Don’t End Once the Business Is Sold

Screening through a professional business brokerage firm or intermediary is essential to finding the right buyer at the right time for the right company and, what’s more, finding the right buyer, who will not only pay their bills but also succeed in running your company successfully (so they can continue to pay their bills).

It’s a little like being a millionaire matchmaker: you can’t just go out and find your client the prettiest, tallest, blondest girlfriend (even if that’s what he “thinks” he wants at the moment).

No, you’ve got to consider dozens of other variables, like how they’ll get along, what her interests are that he shares, how they’ll mature together, what they’ll talk about and will she love him…for him? Or just his money? You even want to screen her to see if she’ll treat the help well because, let’s face it, that’s an indication of how she’ll treat her husband (someday).

The same is true of finding you the right buyer for your company. You may think this is bad, but I have actually told buyers that they can’t even look at the business because they were rude to my staff. WHY? Because these are the types of buyers that will be rude to your employees and clients as well; these are the types of buyers that will burn bridges and bury your business.

You know the employee that is going to give you inside information? Well, it’s kind of hard to find out this information when that employee has stormed out because of this RUDE new BOSS who wasn’t screened properly by your professional intermediary. BUT you must make sure that the buyer is not a jerk…or an idiot.

I say this casually, of course, but it is no casual matter. If you want to get paid, you need to make sure that you’ve done your due diligence in finding the right buyer.

Scot Cockroft is the owner and President of Huntington Business Group Inc. a VR Business Sales firm in Dallas (www.vrbigd.com).

VR Huntington Business Group, located in the heart of the DFW Metroplex, serves the entire Dallas-Fort Worth Metro area as well as North Texas. The company specializes in Business Brokerage, Mergers & Acquisitions, Business Valuation and Consulting services focusing on small businesses and mid-market companies.