Do you have a buyer for my business?

When I speak with sellers, sometimes their first question for me is, "Do you have a buyer for my business?" As common as that question is, I am still surprised when I hear it asked. If I know nothing at all about your business, or, if I've seen your website, how is it possible to have someone looking for exactly what you are offering, without knowing the following?

1. What were your gross sales the last 3 years?
2. What are your gross sales year-to-date?
3. What was your net income the last 3 years?
4. What is your net income year-to-date?
5. What are factors affecting your gross and net income and what are those trends?
6. Do you have any clients that represent more than 10% of your gross sales?
7. How does your asking price compare to your gross and net income, and industry norms?
8. How much inventory is included?
9. Is that value at your cost or the retail value?
10. How much of that inventory is salable?
11. What are your lease terms?
12. How does that compare to your gross sales, and current market lease terms?
13. Do you have any debt on the business that I'd have to assume for this purchase price?
14. Are you offering seller financing for part of the purchase price?
15. What is the minimum down payment a buyer needs?
    
16. How many hours a week are you working in your business?
17. How much vacation time do you take?
18. Are there any key employees, and what is the likelihood they remain with the business after the sale?
19. What are your functions on a daily basis?
20. Is your business cyclical?
21. What are the minimum cash flow needs?
22. What special skills does the buyer need to possess to be successful?
23. What kind of non-compete clause are you offering?
24. What kind and amount of training are offering during the transition period?
25. What is the likelihood that business will be lost because of a change in ownership?
    
26. Will I get paid my normal fee for bringing a buyer to you that purchases your business?

Those are just some of the factors a buyer considers when determining if this is the right business for them, and, how much they are willing to pay for it. And that's also why it's virtually impossible to have a buyer for your business without knowing the answers to these questions.