Quiz: Which Buyer is the Best Fit for Your Business?
Answer these 5 questions to see which buyer persona aligns with your current business structure.
1. How involved are you in the daily operations?
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A. I make every major decision; the business relies on my personal relationships.
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B. I have a solid management team, but I’m still the “face” of the company.
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C. I could take a 3-month vacation tomorrow and the business would grow without me.
2. What is your primary goal for the sale?
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A. To get a fair price and ensure my employees are taken care of by a local owner.
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B. To “level up” the business by joining forces with a larger industry player.
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C. To get the highest possible cash payout and potentially stay on to grow it further.
3. What does your revenue look like?
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A. Steady and reliable, but mostly flat or growing slowly.
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B. Strong, but we have one or two massive clients that represent most of our income.
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C. High-growth with diversified revenue streams and high recurring “subscription-style” income.
4. What is your “Secret Sauce”?
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A. My reputation and years of hard work in the community.
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B. A specific technology, patent, or strategic location that a competitor wants.
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C. A highly efficient, scalable “machine” that produces predictable EBITDA.
5. How long are you willing to stay after the sale?
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A. I want to hand over the keys and retire (or start something new) immediately.
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B. I’m open to a short transition period (3-6 months).
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C. I’m willing to stay for 2-3 years if there is a massive “second bite of the apple” payout.
Scouring Your Results
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Mostly As: The Individual Buyer. Your business is a perfect “lifestyle” acquisition. You should focus on simplifying your operations to make it easy for a new owner to step into your shoes.
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Mostly Bs: The Strategic Buyer. You have something a competitor needs. To maximize your value, focus on “derisking” your customer concentration and protecting your intellectual property.
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Mostly Cs: Private Equity or Family Office. You have built a “Platform.” These buyers will pay a premium for your systems and management team. Ensure your financials are audit-ready.
Michael Shea represents the Tampa Florida Transworld office. In business since 2005, he has established a reputation as a trusted business broker across Florida’s key markets- from Tampa to Orlando, Melbourne, and more. Over the past two decades, Michael and his team have closed over $1 Billion in sold business volume and presided over more than 450 transactions. His credentials include the IBBA Certified Business Intermediary®, and most recently, the prestigious Certified Exit Planning Advisor® (CEPA) credential.