Selling your business is not just about showing strong revenue or good customer reviews. Buyers are looking at much more. Buyers often walk away from deals not because of price, but because of uncertainty. Understanding what buyers care about most can help you prepare your business for sale and get the strongest possible offer.
At Twisdale Law, PC, we work with buyers and sellers across North Carolina, South Carolina, and Tennessee to structure clean, fair transactions. Here are the factors buyers consistently care about, and how you as a seller can get ahead of potential issues.
- Verifiable Financials
Buyers want to see accurate, organized, and transparent financial records. This includes, but is not limited to:
- Three years of profit and loss statements
- Tax returns
- Balance sheets
- Documentation of paid sales or local taxes
If your numbers are messy or if your personal expenses run through the business, buyers will discount the value, or walk away.
- A Business That Can Run Without You
Owner dependence is one of the biggest red flags. If you are the only one with key relationships, technical know-how, or customer service skills, your business may fall apart once you leave.
Buyers prefer businesses with:
- Standard operating procedures (SOPs);
- Delegated responsibilities; and
- A management team or staff that can stay post-sale.
The more your business looks like a machine that runs without you, the more valuable it becomes. This is often challenging for small businesses who are self-employed.
- Transferable Contracts and Relationships
Buyers want to know what they are really getting. If your biggest customer has no written agreement or your supplier contracts are tied to your personal credit, the buyer is taking on risk. We have experienced situations where the Seller has prematurely notified the biggest client of the sale and that client has decided to take their business elsewhere.
Help buyers by:
- Making sure contracts are assignable;
- Securing long-term agreements where possible; and
- Documenting customer relationships and processes.
- Clean Legal and Compliance History
Buyers do not want to inherit legal trouble. That includes, but is not limited to:
- Unfiled or unpaid taxes;
- Pending lawsuits;
- Employment law issues;
- Improper business licensing; and
- Disputes with vendors or landlords.
At Twisdale Law, we have seen deals fall apart because a seller had outstanding payroll tax issues or failed to disclose a threatened lawsuit. Legal due diligence is real and buyers will find out.
- Protected Intellectual Property and Brand
Many small business owners do not realize that their brand may be the most valuable part of what they are selling. If your business relies on a name, logo, process, or software, and you have not legally protected it, buyers will hesitate.
Secure your value by:
- Working with Twisdale Law, PC to register your trademarks;
- Formalizing website ownership and domain rights;
- Documenting proprietary processes or product formulas; and
- Working with Twisdale Law, PC to make sure the Intellectual Property created by employees or contractors is assigned to the business.
- Recurring or Predictable Revenue
Buyers love recurring revenue models. Subscription services, maintenance plans, and ongoing client contracts all make a business more predictable and less risky.
If your business does not have this yet, consider:
- Converting occasional services into service plans;
- Offering long-term agreements or retainers; and
- Automating renewals and follow-ups.
- A Deal Structure That Makes Sense
Finally, buyers care about how the deal is structured. Are they buying assets or equity? Will there be seller financing? Are they expected to take on debts?
The more transparent and flexible you are, the smoother the negotiation process will be.
Twisdale Law, PC Helps Sellers Think Like Buyers
We help small business owners prepare for sale in a way that speaks to what buyers actually want. That means cleaning up liabilities, documenting value, and making sure your legal house is in order. With offices in Spartanburg, Asheville, and Jonesborough, we work with sellers throughout the Carolinas and Tennessee.
Contact Twisdale Law today to prepare your business to attract serious buyers and close a strong deal.
