When you’re selling your business, it’s exciting to receive inquiries from potential buyers, especially if your business isn’t even actively listed for sale. However, not every inquiry is worth pursuing. Many so-called “buyers” lack the skills, financial resources, or commitment needed to complete a transaction. Without careful screening, you risk wasting valuable time, or worse, jeopardizing the confidentiality of your sale.
That’s why pre-qualifying potential buyers is an essential step in the selling process.
Protecting Your Business Starts With Screening
Before sharing any confidential information about your company, serious buyers must:
- Sign a Non-Disclosure Agreement (NDA):
An NDA protects your proprietary information. An NDA is standard practice, and if a buyer refuses to sign one, that should be a red flag. - Provide Key Information:
A qualified buyer should supply a personal financial statement, a recent credit score, and a summary of relevant business or industry experience. Since most business purchases involve financing, verifying a buyer’s financial readiness is critical.
In addition, there are certain leading questions that should be asked of a buyer.
Questions to Ask Potential Buyers
1. What type of business are you looking for? Serious buyers may not always have a specific industry in mind, but they usually have a clear sense of what they want to avoid. They are typically focused on certain geographic areas, revenue ranges, and business sizes that fit their goals.
2. How long have you been looking? How many businesses have you evaluated? “Wantrepreneurs” look endlessly but rarely buy. Asking this can save you from timewasters.
3. What is your timeline to buy? Buyers without urgency often drag out discussions, draining your time without making an offer.
4. Have you made any offers? Why didn’t those deals close? Understanding past behavior can predict future actions. Serial low-ballers or indecisive buyers can be avoided early.
5. How much liquid capital do you have available for a down payment? If a buyer doesn’t have enough cash on hand or a willingness to share their financials, it’s unlikely they can close a deal.
6. Will you need financing? Most buyers finance part of the purchase. Pre-screening ensures their credit profile matches lender requirements.
7. What business experience or transferable skills do you have? Matching a buyer’s experience to the needs of your business can prevent surprises (and deal collapses) later.
Why Pre-Qualification Matters When Selling Your Business
Gathering this information doesn’t guarantee a sale, but it helps you spot motivated, capable buyers, and weed out dreamers and competitors.
At Benjamin Ross Group, we receive 30–40 buyer inquiries daily. After careful screening, only about 7–10 are truly qualified. Each qualified buyer:
- Signs an NDA
- Answers all screening questions
- Provides personal financial and credit documentation
This level of due diligence protects your business’s confidentiality, preserves your deal momentum, and saves you countless hours.
Partner With the Experts
Screening buyers can be time-consuming, but it’s crucial. A professional business broker like Benjamin Ross Group ensures that only serious, qualified buyers access your confidential information, so you can stay focused on growing your company while we handle the vetting.
Learn More About Selling Your Business With Us
Ready to start the process? Contact us today for a confidential consultation.
You can also download our free Fact Sheet to learn more about our team and services.
