Everyone has their ideal potential buyer in mind – but there are certain qualities that help buyers succeed. Let’s take a look at 6 characteristics of the perfect buyer (and why they matter):
The ideal buyer knows what they want and goes for it. They’re goal-driven and know that running an automotive business is more than just a new adventure. If you’re speaking with buyers who are employees just looking for a new opportunity, they may not be prepared to continue your business’s success.
They aren’t in it alone
As we’ve mentioned in our other blogs, having an advisor team is a must, whether you’re buying an automotive business or selling it. But when you’re working with a buyer who has a team in place to help them buy a business, you know they’re responsible enough to know they can’t do everything alone. Do-it-yourself buyers are sometimes incapable or streamlining processes, working as a team, and are usually less likely to work out throughout the buying process.
They’re aware of their budget
This may seem obvious, but you’d be surprised at how many potential buyers aren’t in tune with their budget. Buyers who are aware of their budget and what kind of financing is available (and attainable) to them shows that they’re wise with their money. The last thing you want is a short-sighted buyer who needs to change the terms of the agreement, late in the game.
They’re in it for you, too
A good buyer knows that they’re not the only one that should benefit from this deal. While negotiating, they should make it clear they’re willing to make this a win-win situation and are ready to do what it takes to see it through. If they aren’t, they may turn your business into something it’s not, once they assume ownership, which could ruin your legacy.
They have experience
You want someone who knows what they’re doing when they take over your automotive business. Look for someone who’s owned an automotive business before or has a team in place to help them do it if they’re new to the game. A good buyer will be someone who is knowledgeable in the industry and the buying process, aware of potential roadblocks, and willing to sit through the process when the going gets tough. Someone who can stomach the buying process will be able to stomach owning a business!
They’re willing to let others take the reins
As we mentioned, it’s important that the perfect buyer has a qualified team of advisors to back them up. More importantly, though, is being willing to let their advisors take the helm when necessary. Not needing to continually be in charge or micromanage shows maturity and receptiveness to new ideas. It also shows that they’re willing to admit they have weaknesses just like everyone else, which is a great characteristic to have in any leadership role.
If you’re ready to sell your automotive business but need help locating the perfect buyer, contact us today. We’d be happy to help!