OnwardLearn · Selling · Step 6. Share with buyers what you've built
Why you're selling, and how to say it
The short version
- Every buyer asks why you are selling. Most assume the worst until they hear a clear answer.
- The best answer is short, true and consistent every time you give it.
- Common reasons, such as retirement, health, family or a new chapter, are easy for buyers to accept.
- If the business is part of the reason, say so, and explain what you know.
- An answer that changes from one conversation to the next is a warning sign to buyers.
Why buyers ask
A buyer is about to borrow money and bet years of their life on your business. If you are selling because you see trouble coming, they want to know. Until they hear a reason that makes sense, many will assume that is what is happening.
Reasons buyers readily accept
- Retirement.
- Health, yours or a family member's.
- Family changes, such as moving closer to children or grandchildren.
- Burnout, or wanting a different kind of work.
- No family member who wants to take over.
- A partner who wants out.
You do not need to share private details. "I am 64 and ready to step back" is enough.
When the business is part of the reason
Sometimes the reason includes the business itself: a large customer leaving, new competition or rising costs. Say so. Explain what you know and what a new owner could do about it. The buyer will learn it in due diligence anyway. Lesson 6.4 covers weaknesses.
Say it the same way every time
Write your answer down. Use it in the [CIM](/learn/reference#confidential-information-memorandum "The document that describes a business for sale to a buyer who has signed a non-disclosure agreement. The numbers, the history, the customers, the people and the reason for selling."), in every meeting and with your advisors. Buyers compare notes with their advisors, and so do lenders. An answer that shifts, even slightly, raises questions.
What to avoid
- A reason that is not the whole truth.
- A vague answer, such as "it is just time," with nothing behind it.
- Complaints about customers, employees or the industry.
Take this to your own people
The questions for this topic, for your attorney, your accountant or your lender.
- For yourself: "If a buyer asked me why I am selling, what would I say in two sentences?" Listen for: an answer that is true, clear and the same every time you say it.
- For a broker or trusted advisor: "How would a buyer hear my reason for selling?" Listen for: honest feedback on anything that might raise a doubt.
When you’re ready
How a sale actually happens, in plain language — before you decide anything. Make a free account — nothing is shared