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While you would prefer the largest selling price for the business, other factors may influence whom you sell to. As you develop a profile of the ideal purchaser, you will be considering the buyer’s reasons for buying. Buyers can be classified as either strategic or financial.

A strategic buyer will decide how closely the business fits with other businesses in his or her portfolio. Eliminating a competitor by purchasing the business is one strategy. Buying a business that has complimentary product lines, strong marketing, or intellectual property are all motives for strategic buyers.

A financial buyer is mainly interested in the company’s profitability and stability. The investor’s motive could be to own a well-managed business that requires little oversight. Other investors could be looking for a weak business that has potential to do well with strong management in place.

Knowing the strengths of your business and your competitors will help determine potential buyers.

Selling your business to another individual is a very personal process. You will want to be comfortable with that person and believe the new owner will want to take your business to the next level.