How to Vet a Searcher Before You Sign: Questions Every Seller Should Ask

Just as a buyer does due diligence on your business, you should do diligence on your buyer — especially when that buyer plans to personally run what you built. A few pointed questions upfront can save both sides real headaches later.

Ask how they're funded, and whether their capital is fully committed or still being raised — a buyer without secured financing can waste months of your time. Ask about their background: have they run a business before, and do they have operating experience in your industry or a related one? Ask directly what their plan is for your employees, your customers, and your company's culture in the first year. Their answer will tell you a lot about whether they're aligned with what you actually care about.

It's also worth asking how they've handled previous transitions, or how they plan to structure yours, and how much time they expect the seller to stay involved. A searcher who has thought through these questions carefully is one who takes the responsibility of stepping into your business seriously.

The right questions don't just protect you — they help both sides confirm, early on, that this is a partnership built to last past closing day.

If you'd like to talk through what to look for in a buyer, or learn more about how we operate, reach out to Promontory Capital Holdings. We're glad to answer these questions ourselves.