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The Initial Buyer Meeting

NJ Business for Sale

The Initial Buyer Meeting

As a New Jersey business seller, your initial meeting with a prospective buyer is extremely important. It is critical that you make good first impression. When you are selling a small business, the buyer is buying you, your reputation, and your expertise, not simply the business. If you have retained a broker to represent you, he or she will probably be at the first meeting with you, but you should be prepared to do most of the talking at this stage of the process. Accordingly:

Be prepared to give the buyer a tour of the facility. Since in most cases confidentiality is important and employees are not being made aware of the impending sale, the initial meeting will take place at night or on weekends.

Dress like a business person, even if your day to day routine does not require this. It helps to establish credibility. This means a suit and tie for men, or a woman’s suit for women.

Be prepared to answer questions that are not addressed in the memorandum of sale, or to elaborate upon issues that are addressed.

If you do not know the answer to a buyer’s question, let him or her know that you will get back to them later. Do not make up an answer.

Never become defensive to questions that you may not like. When a person is spending in the hundreds of thousands or millions of dollars to purchase a business, they have the right to ask anything they want and to receive clear, forthright and complete answers.

At the conclusion of the meeting, if the buyer is interested, he or she will probably ask for additional documents or information such as tax returns, a copy of the lease, or other legal or financial documents. Provide these in a timely fashion. Do not be pushy and try to “sell” the buyer.  It won’t work.

If the prospective buyer decides to make an offer, it is at this point that your broker will earn his or her commission and will take over the sales and closing process.

Call today for more information: 908-931-9300


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