One of the biggest problems that you might face when selling your advertising & design agency is finding a sincere buyer who has a genuine interest in buying your business. This is mainly because most buyers are non-serious and non-qualified. These types of buyers not only waste seller’s precious time, but also they play a vital role in pushing sellers to ‘burn out’ phase. Some buyers don’t even hesitate to break the rules, such as they comprise the selling efforts of seller by violating the non-disclosure rules. That’s why, it is very important to find a sincere buyer. So, how do you identify a time-waster and a serious buyer? Here are some smart ways to identify a time-waster.
1: Ask for Buyer’s Resume Prior to First Meeting
Before you meet the buyer, it is strongly advised to ask for their resume or financial statement prior to the first meeting. If the buyer refuses to provide these two documents, it is a clear sign that they are not serious in buying your advertising & clipping path company.
2: Refusal to Sign a Non-Disclosure Agreement
Do not share information about your advertising & design agency with the buyer without signing the non-disclosure agreement. If the buyer refuses to sign this agreement before learning the identity of your advertising & clipping path company, it is also a clear indication that they are investigating your business just for a hobby. Exchange of basic information when buying or selling a business is a common practice.
The first step of buying or selling process requires buyer to sign a non-disclosure agreement and seller to share information with the buyer like name and general information about the business. In this step, buyer is also required to provide his/her resume and financial statement. Once this exchange of documents and information has taken place, you can start important discussion with the buyer.
3: Catch Lies
A time-waster will tell lies about several things, such as their experience in advertising & design industry. All you have to do is catch the pretend buyer in lie. For example, if the buyer claims that he/she has experience in advertising & clipping path business, you can simply catch this lie by looking at the questions they are asking. If they are asking too basic questions and if they look puzzled, it is another clear sign that they are wasting your time. The idea here is to get the feeling that you are dealing with a buyer who is not what he or she pretends to be. Another way to catch a buyer in a lie is to watch for the clues that tell you that the buyer is not what he or she is representing.
On the whole, if you see these two signs in any buyer, be extremely careful when dealing with such kind of buyer. This should be your first priority to know with whom you are dealing before spending time and sharing important information with them. This will not only help you save your time, but also it will help sell your advertise & clipping path company faster.
Angel investors make a great alternative financing source. You can find a partner who is ready to invest in the business purchase, or you can find an angel investor. These individuals can not only provide you with the cash you need to make purchase, but also they can help you successfully run your newly acquired advertising & design company. If you plan to use this option, be very clear about the repayment terms and also about the role of your angel investor or partner in your newly acquired business. It is strongly recommended to have your solicitor and business broker review all agreements. This practice will help you protect your rights as an owner of the newly acquired advertising & design business.
