By Jeff Gau, Marco CEO When evaluating a buyer, it’s common for owners to consider how the company will take care of their employees and customers. But how about the owner?
Knowing what the owners want out of the deal is important, too. Deals can be structured in a variety of ways. Here are two questions that I recommend owners to consider when evaluating a buyer:
1. Do you want cash now? Knowing how you will get paid for your business is important. Many times, deals come with earn outs, deferred compensation or maybe even future promises on re-investments. I’ve found that owners typically like cash at the time of sale.
2. What role do you want to play, if any? We’ve found two-thirds of owners are ready to leave when selling their company. Others choose to take a role, typically in sales or service leadership, or serve as a consultant during a transition period. Know the role that you want to play and communicate it to your prospective buyer upfront.