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What must a business owner prove to a potential buyer?

April 26, 2017Business buyer owner potential prove

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What must a business owner prove to a potential buyer?

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The seller of a business must demonstrate to the buyer that the new owner will be able to adequately compensate management and employees, service the debt, receive a return on and a return of the investment, and make a profit. The seller must adequately show the buyer that the buyer will not experience financial failure if a deal is consummated. The transaction must make financial sense.