Before selling your company, ask your buyer these 5 questions | Entrepreneur

When it comes to selling your company, the figures are important – but the fit matters more. Founders can become entangled in the valuation, deal structure and the closing of time lines. But the real success of an exit is not only measured in dollars; It is measured in Legacy, Continuity and the future of what you have built. A recent study showed that 58% of the owners of small companies priorities Business continuity and the values ​​of the company protect over financial reasons. That is why choosing the right buyer is just as good about coordination as about economy.

Whether you are selling to a private equity company, a strategic acquirer or an operator of the next generation, here are five essential questions that each founder must ask to ensure that the buyer is the right fit.

1. “What is your vision of the company after acquisition?”

This question cuts the heart of the alignment. You have built your company for years – maybe decades. You want to know that the buyer not only sees his value in spreadsheets, but also in his people, culture and potential.

A good buyer will have a clear, well -considered answer. They will talk about growth strategies, operational improvements and how they intend to build on your foundation. A great buyer will also ask You What your vision is – and how they can honor it.

Red flag: If the buyer is vague, exaggerated aimed at cost -saving or a “flip it fast” mentality, walk away.

Related: I wish I knew these things before I sold my business

2. “How do you work with founders and leadership teams during and after the transition?”

Every buyer has a different approach to integration after acquisition. Some want the founder to stay for a transition period. Others prefer a clean break. Some bring their own operators; Others are capable of existing teams.

Understanding their style is crucial. If you plan to remain involved, you want to know how decisions are made, how much autonomy you will retain and what support you will receive. If you step away, you want to ensure that your team is set for success.

For the tip: Ask for examples of previous acquisitions. How did those transitions go? What worked – and what not? Can you speak with earlier owners who have sold them? If so, ask them how the process went, if they were happy with the outcome and whether there is anything, they would have done differently.

3. “What is your track record with companies like mine?”

Experience is important. A buyer who understands your industry, the customer base and the business model is better equipped to grow what you have built. They will also appreciate the nuances that make your company unique.

For the tip: Ask for their portfolio. Have they previously taken over similar companies? What were the results? How long have they kept those companies? What kind of support did they offer?

4. “How do you define success for this takeover?”

This question reveals the priorities of the buyer – and whether they match yours.

Are they aimed at short-term-eBitda growth or long-term brand value? Given the preservation of employees, customer satisfaction or community effects? Does she want to integrate your company into a larger platform or independent?

There is no right or wrong answer – but there is a good answer for you. If their definition of success does not match your values, it is worth reconsidering the deal. Be on your guard if they try to change the deal at the last minute. One of our customers recently walked away from a deal with a PE company that tried to adjust the deal because the sales figures fell while the owner was anchored in the sale.

Bonus tip: Ask how they measure success in their other investments. The statistics they follow will tell you a lot about what they really appreciate.

5. “What is your plan if things don’t go as expected?”

Every deal can look great on paper. But what happens when the market shifts, delays an important employee or growth?

These situations can test the resilience and integrity of a buyer. What is their plan B (or C)? Are they committed to the long -term company? How do they deal with adversity?

Their answers give you insight into their communication style. Are they transparent? To collaborate? Will they keep you or your team informed when challenges occur?

Green flag: A buyer who recognizes risks and openly speaks about how they manage it.

Related: selling your company? Do these 6 things now.

Last thoughts: it’s not just a sale – it’s a partnership

Selling your company is one of the most important decisions you will ever make. It is not just a financial transaction; It is a transition from leadership, culture and vision. Consider all options, including passing on to your children or other family members. The right buyer will respect what you have built, invests in the future and tunes on your values. The wrong buyer can unravel hard work for years within a few months.

To ensure that you find the best successor for your company, it is important to ask difficult questions and to listen carefully to the answers. Identify the buyer that matches your goals and will retain the integrity of your company. Remember that the best deals are not just about the price, but that they have to make factors, people and the path ahead. If you are not sure where to start, consider talking to a certified exit planning adviser (CEPA^®) that can help you evaluate your options and forge a path ahead.

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