Selling your business is a critical decision, and interviewing buyers is one of the most important stages in this process. How you present yourself and your business can make all the difference in securing a premium offer. In this article, we’ll walk you through key strategies to help you excel during buyer interviews, build trust, and maximize the value of your company.
Set the Stage for Success When Interviewing Buyers
When interviewing buyers, first impressions matter. It’s essential to set the right environment for your calls. Ensure you are in a quiet, professional space with a stable internet connection. Equally important is turning on your video during the interview. Having video on allows potential buyers to get a sense of your personality and your passion for the business.
Buyers are more likely to trust a seller when they can see and engage with them on a personal level. After all, they’re potentially writing a significant check, and they want to feel confident that they’re making the right decision.
Key Point: A professional setting and a personal connection are crucial in interviewing buyers and building trust.
Managing Ego and Active Listening During Buyer Interviews
As a business owner, you’ve rightfully earned a sense of pride in what you’ve built. However, when interviewing buyers, it’s important to manage your ego. While confidence is important, avoid sounding overprotective or overly egoistic about your business. Buyers, especially sophisticated investors, are accustomed to dealing with successful entrepreneurs like yourself and are well aware of the hard work behind your achievements.
Remember, these buyers are likely writing you a large check—possibly in the millions—and they expect professionalism. Engage in active listening, ask insightful questions, and respect their opinions. This not only helps to build rapport but also shows that you are flexible and open to discussions.
Key Point: Keep your ego in check and stay engaged through active listening when interviewing buyers.
Transparency in Buyer Interviews: Striking the Right Balance
We encourage sellers to be transparent when interviewing buyers, but it’s important to strike the right balance. Complete transparency helps build trust, but overemphasizing certain challenges or issues can negatively impact how buyers perceive your business.
Instead of framing your business as too difficult or problematic, share how you've overcome obstacles and present these challenges as growth opportunities. Buyers expect transparency, but they also want to feel confident that the business they’re buying has a solid foundation and future potential.
Key Point: Be transparent during buyer interviews, but don’t frame challenges in a way that undermines your business’s value.
Frame Your Business as an Opportunity, Not a Challenge
When interviewing buyers, one of the most common mistakes sellers make is focusing too much on the difficulties of the business. Statements like “this is a tough industry” can be off-putting to potential buyers, making them hesitant to proceed.
Instead, use your interview as an opportunity to highlight the strengths and future opportunities of your business. Buyers are aware that every business faces challenges, but they’re interested in how those challenges can be turned into growth. By framing the business as a strong investment with room for expansion, you encourage buyers to see the possibilities.
Key Point: During buyer interviews, present your business as a valuable opportunity rather than focusing on its challenges.
Motivated Sellers Are Not Desperate Sellers
A misconception some sellers have is that showing motivation to sell may be perceived as desperation. When interviewing buyers, it’s important to understand that motivation does not equal desperation. Being motivated simply means you care deeply about preserving the legacy of your business and want to find the right buyer who will continue its success.
Convey to potential buyers that your motivation stems from wanting to ensure a smooth transition and finding someone capable of taking your business to the next level. This paints you as a thoughtful and strategic seller, not someone in a rush to offload the business.
Key Point: In buyer interviews, show that you are motivated to sell without appearing desperate.
Flexibility in Deal Structures During Buyer Interviews
One of the key aspects of interviewing buyers is discussing deal structures. While you may have a preference for an all-cash deal, it’s important to show flexibility early in the process. Being too rigid in your expectations can be a red flag for buyers, who may worry that something is amiss.
Flexibility is especially valuable when the buyer is someone prominent—such as a high-profile investor or company. For example, while you might want an all-cash deal with one buyer, you might be open to retaining equity if someone like Mark Cuban or Bill Gates is involved. The key is to encourage all buyers to submit offers, rather than discouraging them with a rigid structure from the start.
Key Point: Show flexibility during buyer interviews to encourage more offers and avoid scaring off potential buyers.
The Importance of Coaching and Guidance When Interviewing Buyers
One of the most overlooked aspects of interviewing buyers is the role of your M&A advisor. Behind the scenes, your advisor and their team are working tirelessly to market your business, find qualified buyers, and secure the best possible deal. The expertise of experienced M&A advisors—like our team at PRIME Exits and American Healthcare Capital, which has successfully closed over $7.5 billion in transactions—can make all the difference in the sale of your business.
Proactively ask for coaching and guidance on how to improve your calls and presentations. After all, your advisor has the experience to help you navigate complex buyer interviews, manage different deal structures, and ultimately close the best deal for your business.
Key Point: When interviewing buyers, lean on the expertise of your M&A advisor for guidance and strategy. Their experience is critical to securing the right deal.
Managing Meeting Requests with Buyers
As interest in your business grows, you’ll likely receive multiple meeting requests. When interviewing buyers, it’s essential to manage your schedule efficiently. Communicate with your M&A advisor about whether you’re available to attend additional meetings over the next 30 days, or if you’d prefer to focus on specific buyers.
Key Point: Keep your M&A advisor informed when interviewing buyers to ensure your schedule is managed efficiently and momentum is maintained.
Final Thoughts on Interviewing Buyers
Interviewing buyers is one of the most important steps in selling your business. By setting the stage for success, staying flexible, and engaging with buyers thoughtfully, you significantly increase your chances of securing the best possible deal. At PRIME Exits and American Healthcare Capital, our team has successfully closed over $7.5 billion in transactions, and we have the expertise to guide you through the process with confidence.
If you approach interviewing buyers strategically, you can build trust, present your business as a valuable opportunity, and negotiate a premium sale that preserves your legacy for years to come.
Dr. Allen Nazeri, aka "Dr. Allen," boasts over 30 years of global experience as a healthcare entrepreneur. He is the Managing Director at American Healthcare Capital and Managing Partner at PRIME exits. Dr. Allen provides strategic growth consulting to leadership teams of both privately held and publicly listed companies, ensuring their preparedness for successful exits.
He holds a Dental Degree from Creighton University and an MBA in M&A and Investment Banking from the University of Bedfordshire. Dr. Allen is the author of "Value Engineering: Strategies to 10X the Value of Your Clinic and Dominate the Market!" and the brand new book "Selling Your Healthcare Company at a Premium". Dr. Allen offers a free valuation to business owners ready for a partial or complete exit strategy. Dr. Allen collaborates with strategic buyers, private equity firms, and institutional investors, taking direct accountability for the annual successful sell-side representation of nearly $750M in enterprise value.
To have a confidential discussion about your company and receive a free valuation, please email Allen@ahcteam.com or Allen@ahcpexits.com
You can now communicate with Dr. Allen's clone https://www.delphi.ai/drallen
Comments