Key questions to ask someone who may buy your business

Choosing the buyer of your business is one of the most important decisions a business owner
can make and it will have a significant impact on the future direction of what happens with your
business -- the shape of your legacy.

Just as we will go through a process of due-diligence to make sure that we are buying a solid
business with opportunities for growth, we recommend that sellers perform due-diligence on
any potential buyers. Here are a few key questions to ask a potential buyer.

"How important is my business in your portfolio?"
Most buyers with significant capital are either buying a business because they want to roll it into
an existing business or because they are buying a number of companies as a part of a portfolio
of investments. In either case, your business is just a modest part of their priorities. When one
of us from The Legacy Network buys your business, running your business will become the focus of his professional energy. You can rest assured that your business will be a priority.

"What is your 'exit strategy'?"
Most buyers explicitly or implicitly plan to sell the business after 3-7 years to lock in the return
on their investment (e.g., to "flip it" for a profit). We in The Legacy Network are committed to
being owner-operators, to buy a company and run it for the long term.

"What is the time horizon for your investment?"
Most buyers have a short- to medium-term time horizon with a need for a quick return that they
can capture before they exit. When one of us from The Legacy Network buys your business, we
are buying for the long term. We will do what is right to invest in your business and help it grow
and thrive.

"Who is going to run my business after I leave?"
Many buyers plan to install new management after the purchase but those future managers are
not always a part of the acquisition process. With The Legacy Network, the person you are
negotiating with is the same person who will be involved in the business after the closing.


"What will happen to my employees?"
Many buyers expect to replace or eliminate many of the employees after an acquisition. In fact, most strategic buyers justify their acquisition price due to planned cost efficiencies (which usually imply headcount reduction). The Legacy Network looks to build upon the foundation that is already in place and expects current employees to grow and develop with our leadership.