How to Screen Potential Buyers and Avoid Time-Wasters!

by Vanessa Lovie 11th of February, 2025

How to Screen Potential Buyers and Avoid Time-Wasting Tyre Kickers!

Selling a business can feel a lot like dating. You put yourself out there, hoping to find the perfect match, but instead, you get messages from people who are just “seeing what’s out there” or who suddenly ghost you after a few chats. When ultimately you want to find the perfect match for your business.

Unfortunately, there are alot of tyre kickers in the business sales world - people who enquire about buying but have no real intention (or ability) to follow through. They are just curious!

So, how do you separate the serious buyers from the time-wasters? Here are the key signs to look for...

1. Is the Initial Communication Personalised?

Genuine buyers take the time to research the business and communicate directly. If the enquiry is a generic message like “I’m interested in your business, can you send me more details?” without mentioning specifics, it’s kind of a red flag.

Whilst this is a common way to complete a form on many portals, like Bsale - as we have built in prompters. It's a good idea to follow up with an email and phone call before providing anymore information. You want to see how interested they really are. Don't just send them an NDA or details, until there is an established line of communication.

A serious buyer will reference details from your listing and ask thoughtful questions, such as “Can you provide more information on the lease agreement?” "How many KG of coffee are you selling per week?" "Can I come and visit the business?".

2. Do They Avoid Financial Discussions?

A genuine buyer will have a plan for financing the purchase and be upfront about it. Tyre kickers often dodge financial questions, saying things like:

“I’ll figure out financing later.”
“I have investors interested” (but won’t say who).
"I need to talk to my business partner" (but never get back to you)

Before you spend time answering their questions, ask them how they intend to buy the business for sale. Ask them if they need a loan, or have access to the funds.

3. Are They Willing to Sign a Non-Disclosure Agreement (NDA)?

A serious buyer will have no issue signing an NDA before accessing confidential business details. Tyre kickers may hesitate, push back, or try to get financials before signing anything. Protect your business by requiring an NDA early in the process. If the buyer is slow to sign, or doesn't respond - they are wasting your time and not really interested.

The more you understand the process of selling a business, the more condfident you can be during the process.

4. Do They Have a Clear Reason for Buying?

Ask the buyer why they are interested in your business. A genuine buyer will have a clear reason, such as industry experience or a strategic business expansion. A tyre kicker may say, “I just want to see what’s available” or “I’m exploring options" or "Im wanting a change". These vague responses indicate they are not serious.

Committed buyers know what they are looking for, how much money they have to invest and will narrow down the options that suit them.

5. Are They Willing to Visit the Business?

One of the biggest red flags is when a buyer refuses to meet in person or visit the business. A genuine buyer will want to see the operations, meet key staff, and get a feel for the business. If they keep making excuses or insist on handling everything over the phone, they likely aren’t serious.

Don't waste time with people who arent willing to come and meet you.

6. Have They Done Their Own Research?

A serious buyer will have done some homework before contacting you. They might reference competitors, industry trends, or your business structure. It's a bit like interviewing for a new employee, the more research they have done about your business, the higher chance they are committed to getting the role.

A tyre kicker will expect you to explain everything to them without having done any prior research. They will know very little about your business or industry.

7. Do They Have a Professional Online Presence?

Now its time for you to do your own research. Most business owners have a Linkedin profile, whether it is active or just their name - either way they should have a presence.

Check their LinkedIn profile, business website, or company history. A serious buyer will have a visible track record in business. If they have no online presence or are vague about their background, it’s worth questioning their legitimacy.

8. Are They Represented by a Broker or Adviser?

Some intermediaries claim to have buyers lined up but are actually collecting prospects for their database. If a broker or intermediary contacts you, ask:

Who is the buyer?
What is their specific interest in my business?
Can you provide written confirmation of their interest?

Legitimate brokers will be transparent about their client’s interest, while tyre kickers will be vague.

9. Have You Verified Their Business Experience?

This ties in with their online presence, but you may want to go deeper. Check their business history. Have they owned a business before? Are they in a related industry? See if you have any mutual contacts. You want to see whether they have any legitimate experience in your industry.

If they lack relevant experience, they may struggle to complete the transaction, or worse they will pull out at the last minute.

10. Do They Have a Clear Timeline?

Ask about their expected timeline for purchase. A serious buyer will have a clear plan, while a tyre kicker will say something vague like, “I’m in no rush.” This often means they are just testing the waters.

Final Tips for Screening Buyers

So if you are in the process of selling your business, always get professional advice specific to your circumstances and remember - not everyone who enquiries is genuine!|

Get professional advice. Business brokers and legal advisors can help you identify serious buyers.
Protect your business information. Never share confidential details before securing an NDA.
Ask for proof of funds. If the buyer is serious, they should be able to demonstrate financial capability. Get a deposit before releasing more detailed information.
Limit how much time you invest. If a buyer keeps dragging out conversations without progress, move on. Dont

Screening buyers is crucial to avoiding wasted time and protecting your business. By recognising the warning signs early, you can focus your efforts on serious buyers and increase the chances of a smooth, successful sale.

For more tips on preparing your business for sale, check out 8 Tips to Improve Your Business Value.

Tags: selling a business