Top Questions Buyers Ask Before Acquiring a Business

Miranda Kishel
Jun 3
2 min read

What Are the Top Questions Buyers Ask Before Acquiring a Business?

Buyers typically ask about financial performance, risk, growth potential, and how dependent the business is on the current owner when acquiring a business. These questions form the core of buyer due diligence—and your ability to answer them confidently can make or break a deal.

Being prepared is key to a smooth and successful sale.

Why These Questions Matter

Buyers aren’t just purchasing assets—they’re investing in future earnings and risk management. They want to understand:

What they’re getting
How stable it is
How easily they can step in and run the business

Fail to provide clear, honest answers, and buyers may walk—or offer significantly less.

Top Questions Buyers Will Ask (and Why)

1. What are the last 3–5 years of financials?

Buyers want to see consistent revenue, profit margins, and expense patterns.

Be ready to share:

Profit & loss statements
Balance sheets
Tax returns
Cash flow reports

Tip: Ensure your books are clean and professionally organized. Sloppy records reduce buyer confidence.

2. How involved is the owner in daily operations?

If the business depends heavily on you, it’s a risk.

Buyers prefer businesses with:

Documented systems
Delegated staff roles
Standard operating procedures

3. Who are your top customers, and how concentrated are they?

Buyers assess customer risk. If one client accounts for 40% of revenue, it’s a red flag.

Prepare to show:

Customer diversity
Client contracts or recurring revenue
Churn rates and retention metrics

4. What’s included in the sale?

Buyers want clarity on assets, inventory, IP, real estate, and goodwill.

Create an asset list that details:

Equipment (with value and condition)
Trademarks or software
Inventory levels
Any excluded assets

5. Why are you selling the business?

Buyers want to know if you’re exiting for strategic reasons—or because something’s wrong.

Be honest, but confident. Common reasons include:

Retirement
Burnout
Pursuing another venture
Life changes

6. What growth opportunities exist?

Savvy buyers look for upside.

Be ready to share:

Untapped markets
Product or service expansion potential
Operational efficiencies

A future-facing conversation increases perceived value.

How to Prepare for Buyer Due Diligence

Here’s how to get ahead:

✅ Organize 3–5 years of financials

✅ Create a list of key customers, vendors, and contracts

✅ Document SOPs and employee roles

✅ Clarify your reason for selling

✅ Outline growth potential

✅ Consider a valuation to support your asking price

The more answers you prepare in advance, the smoother and faster your sale will go.