Mergers & Acquisitions...
Merfeld & Schine, Inc.
Selling Your Company, Step 8:
Separate Buyers fromTire Kickers
It is relatively easy to find prospects who say they want to buy a company. It is far more challenging to separate tire kickers and other non-buyers from genuine, serious, and able business buyers. We will do the due diligence in screening prospects to separate out the real prospects from the others. This includes:
In the case of an iffy prospect (one who we rate between "4" and "7") we set up soft barriers. That is, we ask them to send information or do something(s) that demonstrate they are committed—at least to the degree of perhaps sending a resume and/or sending financial statements, putting their questions in writing, etc.
- financial qualification
- gaining information about each prospect's background
- making subjective judgments as to the likelihood that each prospect is a real prospective business buyer. We assign a quality score of 1—10 for each prospect we talk to.
Our policy is to bring only well qualified and very serious prospects to face-to-face meetings with our sellers. Our job is to funnel the field of perhaps 50 or 60 prospects down to about 7 or 8 serious and viable buyers. Those 7 or 8 will be invited to meet with you (possibly after hours, or off premises to prevent unwanted employee curiosity).
Next step: Meet with Prospective Buyers
Back to Summary of the Selling Process page
We focus on (but do not entirely limit to) selling companies with sales in the $1MM to $20MM range located in the New England States: MA, CT, NH, RI, VT, ME.
If any of our M&A services fit your needs, please feel free to contact us for a free consultation without obligations or sales pressure. Fill out this simple form or call us (401-751-3320)
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