I Don’t Know. Maybe?
Lackadaisical buyers waste everyone’s time and money and should be avoided whenever possible. These casual buyers may be curious but lack the commitment to close, lack the resources to make an acquisition, have the resources but are unsure of the type of business, looking for a deal but far below market value, or just plain snooping with no intention of acquiring a business at all.
With the assistance of an experienced M&A Team, sellers can be certain that potential buyers will be vetted for their commitment to close. On the front end of a deal, potential buyers should:
- Define their criteria for a purchase decision
- Identify their sources of funding
- When would they like to close the deal?
- Are there any deal-breakers?
- Other companies under consideration?
A committed buyer or ideal prospect knows exactly what they want, should be able to give specific reasons for the acquisition, can run the business effectively, has the financial capacity to acquire, and is willing to sign a nondisclosure agreement.