What should I ask a searcher who wants to buy my business?

A searcher is an individual looking to buy one company and then lead it. Some are backed by investors, and some are using their own funds. Because the buyer may become your successor in the business you built, the conversation deserves more than a price.

Who is backing you, and is the money committed?

Ask where the funds come from and whether they are in place or still to be raised. A buyer whose financing is uncertain may take longer or fall away. Ask whether lenders or investors have been spoken to about your company, and what they need to see before they commit.

What is your plan for the business?

Ask how they would run the company, what they would change and what they would leave alone. A thoughtful answer shows they have studied the business. Ask also about their experience, and whether they would give references you can call.

What about the transition, staff and customers?

Ask how long they expect you to stay involved, what they need from you and how they would introduce themselves to your team and clients. Ask what they have in mind for employees. These answers tell you whether the handover would feel the way you want it to.

Protect yourself in the process

Before sharing detailed records, ask your lawyer about a confidentiality agreement. Keep notes of what is promised, and ask for it in writing. Compare what you hear with the questions in what a buy-side advisor does, since it shows how organized buyers prepare. For another type of investor-backed buyer, see what selling to private equity means for you.