The first buyer type is the individual buyer. This is typically an individual with substantial financial resources, and with the type of background or experience necessary for leading a particular operation. The individual buyer usually seeks a business that is financially healthy, indicating a sound return on the investment of both money and time. The individual buyer will hit a strong bottom line when it comes to price. Therefore, these buyers will usually limit themselves to transactions involving less than $1 million cash.
The individual buyer may have experience in the industry of the business for sale. They could have been saving for just this type of situation, or possibly have other resources to finance the purchase.
The individual buyer looks like someone that might even work in the business for sale. Maybe the General Manager or another key employee. In this instance, identifying the person within the company early is beneficial. A Succession Plan can be developed to include the process the employee follows to buyer the company. This can include seller financing, secure a SBA loan, or a conventional bank loan.
If there is nobody within the organization that is interested or able to buy the business, the current owner may need to take it to the open market. Business for sale websites and other marketing maybe involved. If the business owner does not want to risk letting the world know it is for sale, they should begin succession planning earlier.