Business Buying 101-Step 6-Customers

Business Buying 101-Step 6-Customers


The buyer should ask for a customer roster highlighting the largest customers by sales over the past three to five years. You may want to reconsider the purchase of a company where 85 percent of revenue originates from a single customer, especially if the seller is a “key man or woman”.A cute capybara in the style of Vermeer, sitting at a counter of his store waiting for his customers

  • Customer retention and churn rates, including information and an explanation of significant customers lost within the last three to five years.
  • Sales agreements ensuring future commerce
Customer sentiment

If available, consult customer reviews on websites such as the Better Business Bureau and Yelp. Request the most recent customer satisfaction survey. Examine and confirm each customer’s data. In order to determine the biggest clients in terms of revenue and their purchasing patterns over the previous two to three years, it is necessary to analyze customer lists and databases. When evaluating customer information, a business broker should focus on the following critical areas:

Customer databases, subscriber lists, and sales records should all be examined by the business broker in order to determine which clients are the most lucrative in terms of sales. This would entail looking at consumer habits and pinpointing any notable shifts in sales volume over the previous few years.

Advertising Programs, Marketing Programs, and Events:

In order to understand how the business attracts and keeps clients, the business broker should examine all advertising, marketing, and event programs. Analyzing advertising and promotion tactics and finding any campaigns that have been exceptionally effective in luring new clients would be part of this.

Standard Communications and Correspondence:

In order to comprehend how the business interacts with its clients, the business broker should review copies of standard communications and correspondence with clients. Analyzing client complaints, feedback, and any other communications pertaining to customer satisfaction would fall under this category.

Customer Research Data, White Papers, or Research:

In order to comprehend consumer behavior and preferences, the business broker should evaluate any customer research data, white papers, or research that the firm has produced. Analyzing customer surveys and focus group comments would fall under this category

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