Buying a business isn’t just about the numbers—it’s about finding the right fit. In a recent podcast, Tim Schumacher, an experienced entrepreneur and investor, explains what business buyers really look for. Tim co-founded Sedo and has invested in many businesses, so his advice is valuable for anyone thinking of selling or growing their business.
Here are some highlights from the conversation:
Tim says that buyers want to see steady, reliable income. If your business has regular customers, long-term contracts, or a subscription model, it’s much more attractive to buyers. They want to avoid risk, so a business that shows consistent earnings is a safer choice for them.
Buyers like businesses that can easily grow bigger. Tim explains that companies with systems in place to handle more customers, bigger orders, or new markets are the ones that get noticed. If your business can expand without too much extra cost or effort, it’s a big plus.
A good team is key. Tim highlights that buyers don’t just look at the product or service—they’re also looking at the people behind it. A strong leader and motivated staff make your business more appealing. Buyers want to know the company will keep running smoothly even after they take over.
Tim points out that a buyer looks for a business that fits into their own plans. They might want to enter a new market, add new products, or grow their customer base. If your business helps them do that, it becomes more attractive.
Buyers worry about risks like legal problems or financial issues. Tim suggests cleaning up any potential problems before talking to buyers. By handling risks early, you make your business more appealing and avoid any surprises that could stop a deal.
If you want to sell your business, it helps to understand what buyers are looking for. Tim Schumacher’s advice shows that having a predictable income, being able to grow, having a strong team, and fitting into a buyer’s long-term plan all make your business more attractive. Handling any risks beforehand can also increase your chances of selling successfully.
Want to learn more from Tim Schumacher? Click here to listen to the full podcast.