Questions to ask a buyer

The short version

• You are interviewing the buyer as much as they are evaluating you.
• Ask how they will pay, why they want this business, what they would change and how they plan to run it.
• Ask what they need from you after closing, and for how long.
• Listen for specific answers. Vague answers often mean the buyer is not ready.
• Keep notes, and compare buyers on the same questions.

Why ask

A buyer will ask you many questions. Your questions matter just as much. They tell you whether this buyer can close, whether they will run the business well and whether they are someone you want to hand it to.

The questions

1. "How do you plan to pay for the business?" Listen for: a specific mix of cash, a loan and anything they would ask you to carry, with a lender already named.
2. "Why this business, and why now?" Listen for: real reasons tied to your industry, your location or their background. "It looked like a good deal" is not enough.
3. "Have you owned or run a business before?" Listen for: relevant experience, or an honest plan for what they do not yet know, including who will help them.
4. "What would you change in the first year?" Listen for: thoughtful ideas that show they understand the business. Be cautious if they plan big changes before they have learned how it runs.
5. "How involved will you be day to day?" Listen for: a clear answer. A buyer who plans to run it themselves needs different skills than one who plans to hire a manager.
6. "What are your plans for my employees?" Listen for: specifics about who stays and in what roles. Lesson 7.5 covers this.
7. "What would you need from me after closing, and for how long?" Listen for: a realistic handover period and a clear role for you.
8. "Who is on your team?" Listen for: an M&A attorney, an accountant and a lender who have done this before.
9. "What would stop you from buying this business?" Listen for: honest concerns. Knowing them early lets you address them or move on.
10. "How soon could you close, and what has to happen first?" Listen for: a realistic timeline that includes their lender's review and due diligence.

Keep it fair and comparable

Ask every serious buyer the same core questions and write down their answers. It makes offers easier to compare and keeps you from being swayed by the most confident talker.