What do small business owners secretly wish for when planning to sell?

When selling their small businesses, sellers often (usually!) have concerns and priorities that might surprise buyers. Trust me: for most sellers, it's not all about the money.

So what are those considerations? Here are 10 you absolutely need to consider if you're trying to buy a small business - no matter if you're a traditional searcher, self-funded searcher, or even an independent sponsor. 👇

𝟭. 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗪𝗲𝗹𝗳𝗮𝗿𝗲: Most sellers care deeply about what will happen to their employees once the business is sold. They want to ensure that their workers, who may have become like family, are treated well by the new owner. This concern can sometimes outweigh a higher offer that doesn't guarantee job security for employees.

𝟮. 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗟𝗲𝗴𝗮𝗰𝘆: Many sellers are significantly invested in the legacy of their business. They want the buyer to continue running the business in a way that aligns with its established values and practices. Preserving the business's reputation and continuing its mission can be as important, if not more so, than the sale price.

𝟯. 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗖𝗼𝗻𝘁𝗶𝗻𝘂𝗶𝘁𝘆: Sellers often worry about how the sale will affect their loyal customers. They look for buyers who they believe will maintain the quality of service or products that their customers expect. For some sellers, knowing that their customers will be in good hands is critical.

𝟰. 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝘁𝘆 𝗜𝗺𝗽𝗮𝗰𝘁: Small business owners typically have strong ties to their local communities. Sellers might prioritize buyers who intend to keep the business local and invest in community relations.

𝟱. 𝗖𝘂𝗹𝘁𝘂𝗿𝗮𝗹 𝗙𝗶𝘁: Surprisingly, the personal values and operational style of the potential buyer matter to many sellers. They might prefer a buyer whose personal and business philosophy aligns with theirs, believing that such a buyer is more likely to succeed in and care for the business.

𝟲. 𝗙𝘂𝘁𝘂𝗿𝗲 𝗚𝗿𝗼𝘄𝘁𝗵: Some sellers are interested in seeing their business grow beyond what they could achieve themselves. They might look for buyers who have a clear and ambitious vision for expanding the business, even if that means making significant changes.

𝟳. 𝗖𝗿𝗲𝗮𝘁𝗶𝘃𝗲 𝗗𝗲𝗮𝗹 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗶𝗻𝗴: Sellers might be open to or even prefer creative structuring of the deal, such as earn-outs or seller financing, especially if it helps address other concerns like the welfare of employees or the preservation of the business’s legacy.

𝟴. 𝗡𝗼𝗻-𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗖𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻𝘀: Buyers who can bring something to the table besides money, such as industry connections, expertise, or innovative ideas, might be particularly attractive to sellers. Sellers might be willing to accept a lower offer if they believe the buyer can add significant non-financial value.

𝟵. 𝗧𝗵𝗲 𝗦𝗲𝗹𝗹𝗲𝗿’𝘀 𝗥𝗼𝗹𝗲 𝗣𝗼𝘀𝘁-𝗦𝗮𝗹𝗲: Contrary to what buyers might expect, some sellers wish to remain involved with the business in some capacity after the sale, such as through a consultancy role. This desire can stem from their emotional attachment to the business, concern for a smooth transition, or belief that their ongoing involvement can help ensure business continuity.

𝟭𝟬. 𝗖𝗼𝗻𝗳𝗶𝗱𝗲𝗻𝘁𝗶𝗮𝗹𝗶𝘁𝘆 𝗼𝗳 𝘁𝗵𝗲 𝗦𝗮𝗹𝗲 𝗣𝗿𝗼𝗰𝗲𝘀𝘀: Sellers often worry about the impact of the sale process on their business. They might prioritize buyers who understand the need for confidentiality to prevent unsettling employees, customers, or suppliers before the sale is finalized.

If you enjoyed this, you can find more insights like this on the Feta Fund website.