These days, we’re averaging about four offers for every franchise we sold in 2024. That means sellers have choices, and they often ask for our guidance on how to choose the right buyer. Here’s what we tell them.

It’s not only about the highest purchase price. Yes, price matters, but the terms can make or break a deal for a seller. How long the buyer wants the owner to stay in the business after the sale. How large a deposit the buyer is willing to put down during the diligence process. How much time they want for the due diligence process. How long will it take to close. Who will be responsible for paying the transfer fees and upgrades (both of which can have a big impact on the net from the sale.)

It matters what the buyer’s business plan is. The seller is invested in ensuring the company continues to thrive and provide great service, so it matters who the next owner is and what they plan for the business. Will they operate it themselves or be an absentee owner? What are their plans for growing and /or improving the business? What are their plans for the staff after you take over?

Understanding what comes next after the sale can give an owner insight into who the best fit is for the business they’ve invested years in building. That’s why our system asks for a brief business plan for every prospect that an owner can read and take into account when they’re considering an offer.

It’s important to understand the buyer’s story. Many owners prefer to sell to someone based on their values. That’s why we ask questions about who the buyer is. What made them choose this business over others? What other franchises did they research and consider? Why did they decide not to pursue them?

Do they have the liquidity to keep the business running? Do they have other sources of income that will sustain them during lean times? How much – and what kind of – business experience do they have in their background? What is the likelihood the franchisor will approve them?

Sometimes, story details matter the most. We recently had an owner who wanted to select the offer of a West Coast-based buyer. In our conversations, we reminded the owner that the buyer had never even been to Georgia before. We spent weeks in negotiations and diligence, which ended the first time they flew out to visit. It turns out that the buyer decided that they did not want to relocate to Pennsylvania. They moved on to their second option, but only after months of wasted time had eroded trust in the buyer, who knew the business location was not their first choice.

We present thorough information about the buyers and assist the Seller with identifying the pros and potential challenges with each buyer. We want the seller to make an informed decision that’s right for them based on financial and personal factors. The seller makes the final choice.

Our proprietary system gives Sellers an enormous amount of data about a buyer that they might never get when listing with their franchisor. Sellers, with a couple of clicks, can learn enough about a prospect that whatever their decision, we both are sure that it will be an informed one.

If you’re interested in talking about selling your business, give us a call or get a complimentary and confidential opinion of value.