Selling your alarm business can be a daunting task – one that takes a significant amount of forethought and planning. From preparing your alarm company for sale (which can take anywhere from months to years) to setting a succession plan in place (which should be done well before you plan to sell), putting your alarm business on the market is a time consuming endeavor that is no small feat.
Once you’ve decided it’s time to sell, your company is prepared, and you’re ready to move forward, you’ll want to make sure all of your hard work leading up to the sale of your business doesn’t go to waste. After building your alarm business’ success for years and carefully preparing it for a successful sale, you’ll want to make absolutely sure that you are handing the reins to the right buyer.
So how do you ensure you’ve found the right person to take the helm? Here are some key questions you should ask to ensure the buyers you are considering are well qualified to purchase your alarm business.
5 Important Questions to Ask Alarm Company Buyers
The following questions can help you get to know the alarm company buyers you are considering, and determine if interested buyers are as well qualified as they might seem.
1. Have you ever purchased an alarm business before?
This question will give you a sense of the buyer’s experience in the market and help you to understand his or her background. By asking this as an open ended question, it will give the buyer a chance to showcase his or her knowledge about the industry and it will give you the chance to ask follow up questions as appropriate related to the security alarm industry to gauge his/her awareness. It will also give you the opportunity to ask for the names and contact information for sellers the potential buyer has worked with in the past so you can reach out to them as references if you feel so inclined.
2. Why do you want to purchase my alarm company?
This question is another opportunity for you to find out how much a potential buyer knows about the security alarm industry. It’s also a great chance for you to learn a little bit about how much they know about your organization. If they are very familiar with the current status of the security alarm industry and can articulate compelling reasons why they are interested in your company specifically, that’s a good sign.
3. How do you plan to finance your purchase of my business?
Businesses don’t come cheap – especially successful alarm companies – so chances are there will be some type of financing involved in the purchasing of your business. Asking this question up front enables you to understand what to expect financially if you choose to move forward with this buyer, and requires the potential buyer to have done his or her homework on funding options well ahead of time.
4. What is your time frame for buying the business?
This question will give you a sense of what to expect from the buyer as well. While it is helpful to know exactly when you should plan to be stepping away from the leadership role in your organization, this query will also help you to gauge whether or not the buyer has a reasonable understanding of how the purchasing process works.
5. What are your future plans for the business?
This is somewhat of a loaded question, but it is an important one to ask nonetheless. You’ve worked hard to build your business successfully for years and now you’re going to be passing it to someone else. It’s helpful to know what you can expect to see as you follow your organization’s trajectory after you’ve sold it. While buyers may not always be entirely honest with their answer to this question, it’s helpful to give them an opportunity to let you know what their plans are for your company. Having a sense of what to expect can give you peace of mind, and if you don’t like the answer you receive, that can signal that the buyer is not the right fit.
Ask All The Right Questions: Work With AFS To Sell Your Alarm Business
While it’s important to focus on the needs of the buyer throughout the selling process, it’s also imperative to get the information you need to feel confident that you’ve chosen the right individual to sell your business to. Due diligence works both ways, and it’s just as important for the seller as it is for the buyer. Asking all the right questions as you navigate the selling process is key to feeling confident in your decision to sell.
Looking for an alarm company broker who can help you ensure that you ask all the right questions? Want to feel confident that your alarm business sale will be as successful as possible? If so, turn to Rory Russell of Acquisition & Funding Services.
With decades of experience as an alarm business broker, Rory knows what it takes to prepare an alarm business for sale and match that successful business with a well qualified, knowledgeable buyer. If you’re hoping to sell your business for maximum profit to a buyer who is worthy of taking the reins, Rory can help you make it happen.
Learn more about what sets AFS apart as an alarm company broker, then contact Rory today at (800) 354-3863 (personal cell) or by completing this quick and easy online form to get the conversation started!