Before embarking on the process to sell your company, you should start by answering some basic questions about why you are selling. What are your goals?
If you are planning to buy a business, you will need to be equally disciplined about your due diligence process lest you waste valuable time, money and energy on a deal that will never happen.
Knowing what investors are going to have issues with gives you plenty of time to address those problems before ever having a discussion with an investor or buyer.
A business buyer can be an individual, a group of individuals, an institutional investor, a company in your industry or a related industry, or even a competitor.
Business valuation is important for a variety of reasons. First, it may be required in a legal proceeding (such as divorce or litigation). Second, valuation is important because it helps the business owner understand where / how the company is doing.