First call with Seller
July 11, 2019
by a searcher from Harvard University - Harvard Business School in Atlanta, GA, USA
What's a question or two that you have found helpful to ask the seller on your first call with them?
July 11, 2019
by a searcher from Harvard University - Harvard Business School in Atlanta, GA, USA
What's a question or two that you have found helpful to ask the seller on your first call with them?
from University of Southern California in Los Angeles, CA, USA
1. Why is it for sale (the advertised reason probably doesn’t mention something serious, so you need to delicately keep circling back to this subject)? *This is only for brokered deals. 2. Who are the buyers and how does one compete (price, service, quality, delivery, product performance, relationships, etc)? 3. Who are the main competitors and what advantages do they have? How has the industry changed over the past 5 years? 4. What is the gross revenue trend? What is the % cost-of-goods-sold and profit margins before tax? How have those changed over the past 5 years (financials may provide this information)? 5. What do you have to be really, really good at to succeed in this business? 6. What is currently the critical skill set of the President/General-Manager? What role does he play in the operation of the Company (initially he will downplay his role so, like above, you need to circle back to this question)? Once sold, who becomes the most important remaining employee and why? 7. What additional investments need to be made in order to insure the Company’s future? 8. What are the critical items to be monitored regularly (if not constantly) to make sure the Company in on track? 9. Who are the key suppliers to the Business and are they critical? How much manufacturing is outsourced and where? Is there a union? 10. What is the formula for success if we define success as just keep doing what you always have done? What are critical mistakes to be avoided?
from Amherst College in Portsmouth, NH 03801, USA