What Does a Savvy Buyer Look for in a Business?
Buying a business is not just about numbers on a page. A savvy buyer understands that success comes from a combination of the right fit, strong fundamentals, and future potential. Here are the qualities that smart buyers consistently look for:
1. A Business They Can Actually Run
Skills matter. A buyer who steps into a business they don’t understand is setting themselves up for a rough ride. A good fit means the buyer has the knowledge—or can quickly learn what’s needed—to run the business effectively.
2. Solid Staff Already in Place
No one wants to buy a job; they want to buy a business. That means good employees who know their roles and can keep things running smoothly. A stable team reduces transition risk and makes growth more achievable.
3. Clear Documentation and Proven Revenue
Claims are one thing, evidence is another. A buyer wants to see tax returns, financials, and operational records that back up the story being told. Written processes and systems also show that the business isn’t just living inside the owner’s head.
4. Positive Momentum
A business on the upswing is more attractive than one that’s flat or declining. Of course, there’s always a concern: was the recent growth just a one-off big project, or worse, “window dressing” by the seller? Maybe—but you don’t assume that. A thoughtful buyer digs deeper before making a judgment.
5. An Industry That Holds Up in Tough Times
Resiliency matters. Buyers want businesses in sectors that can withstand downturns. When the economy slows, a resilient industry provides confidence that the business can weather the storm.
6. Upside Opportunity, Not Just Stability
Some buyers fixate on “stable financials,” but the savvy ones see the bigger picture. A business with room to grow can be worth far more in the years ahead. Stability is nice—but upside is where wealth is created.
7. A Strong Relationship with the Broker
Finally, smart buyers understand the role of the broker. The broker is the gatekeeper to the seller. Treating the broker with respect, providing proof of funds, and showing that you’re a serious buyer makes all the difference. Do this, and doors will open faster.
Bottom line: A savvy buyer doesn’t just look for cash flow today. They look for a business that fits their skills, has good people and systems in place, operates in a strong industry, and—most importantly—has room to grow.
The author Anthony John Rigney is a Certified Business Intermediary (CBI) and has been assisting in the buying and selling of businesses for two decades. As the owner and founder of Quorum Business Advisors he is a recognized Industry leadeer.