Top 10 Questions Business Buyers Will Ask

When selling your business you should be ready because potential buyers will arrive with numerous questions which determine their decision to proceed with the sale. Your responses will determine whether buyers proceed with the acquisition process. Your lack of preparation together with vague or unconvincing responses could drive potential buyers to exit the sale regardless of the business’s financial performance.

The correct responses during business-for-sale market listing or buyer negotiations will establish trust while demonstrating credibility to potential customers. The following Q&A guide provides strategies for honest and strategic responses to typical buyer questions to build their confidence and increase your chances of selling your business successfully.

1. Why are you selling?

Buyers need clarification about whether the business holds any flaws or if you simply want to start your next professional venture.

Your response needs to be optimistic along with factual information but should prevent any negative implications. The best approach to present your decision to retire or pursue new opportunities rather than stating you are burnt out.

When discussing burnout as a selling reason use a more positive spin:

I have achieved the maximum potential of the business so I believe fresh leadership will propel it to new heights.

Pro Insight: Establishing honesty with buyers requires a sensitive method of delivery to show determination but avoid appearing too eager. Authenticity builds trust.

2. How much does the business earn annually?

The potential return on investment (ROI) that you can expect from the business is what buyers want to understand.

The key to answering this question effectively is to present your Seller’s Discretionary Earnings (SDE) together with specific financial details. Organize your P&L statements and tax returns together with an SDE worksheet reviewed by a certified public accountant to demonstrate your business earnings.

The inquiry about profit growth will follow the basic question about the annual earnings.

What are the average monthly revenues?

How has profit trended over the past 3 years?

Are there seasonal fluctuations?

Pro Tip: Be consistent. Any contradiction between your spoken words and supporting documentation should cause buyers to become hesitant. Visual bar charts help present profit trends when developing a presentation.

3. Is the asking price reasonable?

Buyers need assurance about the pricing method used to determine the value of the business.

Answer Tip: Share how the price was calculated. For example:

The asking price follows a calculation method that uses a 2.8 times multiple of the average SDE from the last three years. The evaluation of recent business sales within our industry sector and geographic area served as part of our pricing assessment.

Pro Tip: Provide data. The presentation should include both industry valuation reports and comps (comparables). The use of real-world data to establish price makes it both trustworthy and easier to defend.

4. What’s included in the sale?

Buyers want to know: Am I getting equipment, inventory, software, customer lists—or just the name?

Answer Tip: Detail everything included. For instance:

The sale comprises complete furniture fixtures and equipment (FF&E), website and domain ownership, our CRM database containing 4,000 active clients and $20,000 worth of inventory at cost. The purchase includes full rights to our brand identity together with all intellectual property assets.

Exclusions of real estate and vehicles and contracts should be explicitly mentioned during the initial discussion.

5. Will key employees stay on?

Buyers want to know: Will the business keep running smoothly once you’re gone?

Answer Tip: Highlight team strengths and tenure.

Our operations manager has spent 6 years at our company and remains vital for maintaining daily business operations. Most staff are cross-trained, and morale is high.”

Make sure to avoid making promises about employee retention unless you have direct confirmation from employees. The buyer’s confidence about continued employment depends on realistic employee retention because it directly affects their investment decision.

6. What are the biggest opportunities for growth?

Buyers want to know: Is there room to scale?

Answer Tip: Share real, actionable growth opportunities. Avoid vague statements like “sky’s the limit.”

Instead, say:

Paid digital marketing represents an untapped opportunity in our current business operations. The company has grown mainly through word-of-mouth recommendations. The implementation of a PPC campaign together with affiliate programs will drive fast expansion of our business operations.Or:

A new location located 20 miles away from the current one could easily increase revenue to twice the present amount since market demand is strong in that area.

Pro Tip: Support your statements with research findings from traffic statistics and competitive analysis and market intelligence.

7. Are there any risks or challenges I should know about?

Buyers want to know: What could go wrong—and are you hiding anything?

Answer Tip: Transparency builds trust. Acknowledge any risks before presenting solutions for their resolution.

Example:

Our revenue relies heavily on one client who brings in 40% but we have now obtained three new clients to lower this dependence to less than 30% by the end of the year.

Pro Insight: Every business has risks. Show your professionalism by acknowledging all the risks that exist.

8. Will you help with the transition?

Buyers want to know: Will I be left alone to figure this out post-sale?

Answer Tip: Offer a clear transition plan.

I plan to give 30 days of post-sale training that includes presenting vendors and clients as well as delivering an extensive Standard Operating Procedure manual.

After the transition period some sellers provide additional consulting services for a fee to their buyers. If you have any interest in continuing your services after the transition period it would be beneficial to mention it since it will increase their confidence in you.

9. How dependent is the business on you?

Buyers want to know: Is this business a self-sustaining operation—or a one-person show?

Answer Tip: Show that the business runs independently.

Our team performs 90% of all operations. My current duties include strategic planning and vendor negotiations which can be transferred to another person after receiving proper training.

Pro Tip: When your name appears in the brand name (e.g., “Joe’s Landscaping”) the buyers might worry about losing customers. You should provide proof about your systems and team competence to reassure them.

10. Do you offer any seller financing?

Buyers want to know: Do you have enough confidence in the business to share the risk?

Answer Tip: Be transparent about your willingness and terms.

I would consider financing up to 20% for a suitable buyer who demonstrates a strong background and sound business plan.

Pro Insight: Offering seller financing can make your listing more attractive—and justify a higher price. It also shows you believe in the business’s future.

Bonus Questions Buyers Often Ask

11. What’s your customer retention rate?

If applicable, show that clients return. This highlights reliability and recurring revenue.

12. What systems or software do you use?

Buyers like businesses with established, transferable systems. Share platforms for CRM, accounting, project management, etc.

13. Who are your biggest competitors—and what differentiates you?

Demonstrate awareness of your market and a clear value proposition.

14. What’s your online reputation like?

Share Google reviews, Better Business Bureau ratings, or social proof.

Final Thoughts

The goal of being ready for buyer questions is to demonstrate clear communication and credibility while remaining composed. Buyers are attempting to minimize their risks and gain confidence in the purchase. Your ability to provide documented answers along with examples will strengthen the trust that buyers have in you.

A great business might not sell if the seller seems uncertain. A decent business can sell quickly if the seller is professional, honest, and prepared.