What you need to know about your buyer is, firstly, you need to know about how they’re financing the deal. They could be financing it through cash that they hold on account, or they could be getting a lender support or they could be investor backed. Each different way of funding the deal is going to have an impact on how the transaction runs. Secondly, it’s good to know whether they’re advised by solicitors and accountants because this will make the whole process a lot more streamlined especially if they’ve got good accountants and solicitors doing due diligence. Thirdly, it’s good to know why your buyer is buying. How does your company fit into their business plan and how does it fit into the company’s future? And finally, it’s good to know whether or not they want you to stay on, whether or not what involvement you’re going to need to have after the company is sold. If there’s no involvement, then that could be good. You might be able to just get a clean break but they may want you to stay on for a year to two years to help facilitate a move for the new director, the new manager of the company.
