Taking over a business is a major human and entrepreneurial adventure. One of the most decisive steps in this process is undoubtedly the first meeting with the seller. This initial interview is much more than a simple formality: it constitutes the basis of the relationship between the buyer and the seller, and has a considerable influence the continuation of the negotiations.
In this article, we offer you a complete guide to a successful first meeting with the seller, with practical advice, lists of questions to ask and tips for gaining the seller's trust. Whether you are an experienced buyer or just starting out your first acquisition, these recommendations will help you approach this step with preparation and professionalism.
Why is the first meeting with the transferor so important?
The first meeting with the transferor is much more than an exchange of pleasantries. It allows you to:
- Discover the company beyond the numbers;
- Understand the seller's motivations;
- Create a climate of mutual trust;
- Laying the foundations for a successful negotiation.
This is often the first time the buyer and seller meet face to face, after an initial phase of contact via a platform or an intermediary. This meeting, often organized after the signing of an NDA (confidentiality agreement), generally occurs after sending a company profile which provides an overall view of the key aspects of the company (sector, turnover, personnel, location, etc.).
Before the meeting: prepare well
1. Analyze the company profile
Once you have received the documentation, take the time to study the company profile in depth:
- What is its business model?
- Does its positioning suit you?
- Do you have the capital or financing necessary ?
- Do you see any growth potential or synergies with your background?
Don't be limited by the advertised price. A good deal is, above all, a company in which you can project yourself and bring value.
2. Prepare a list of questions to ask
It's recommended that you prepare a structured list of questions, which you can send ahead of the meeting. This demonstrates your seriousness and allows the transferor to prepare. You'll find suggested questions later in this article.
3. Anticipate the issues of the discussion
The transferor has their own motivations, constraints, and objectives. It is crucial to understand what they expect from this transfer:
- Does he want to stay with the company for a while?
- Is he expecting a quick sale?
- Is he attached to his staff or his business name?
So many elements to anticipate to adapt your posture.
During the meeting: build trust and gather as much information as possible
1. Create a conducive atmosphere
Keep in mind that this first meeting with the seller is as much about human interaction as it is about strategy. The atmosphere of the exchanges, the quality of listening, the transparency of the responses... all of this matters.
Be respectful, curious, and professional. Don't judge. Don't criticize what already exists. Ask questions, observe, and take notes.
2. Get the transferor to talk
The goal is to get him to express himself on:
- His career and the history of the company;
- The reasons for the sale (retirement, fatigue, opportunity, etc.);
- His expectations of the buyer;
- His vision for the future of the company.
3. Visit the premises if possible
If the meeting takes place in the company, take the opportunity to observe the working conditions, the equipment, the general atmosphere, and identify the key people. Prefer a busy weekday for a better assessment.
Questions to ask during the first meeting with the transferor
Here is a list of questions useful to adapt according to the context of the recovery:
About the company
- What is the history of the company?
- What are your main products or services?
- Who are your key customers and suppliers?
- What is the current team structure?
- What development projects are underway?
On management
- What does a typical day at the company look like?
- What are the key functions that you personally perform?
- Who makes strategic and operational decisions?
- What tools or software are used?
Regarding the financial situation
- What is the turnover and profit for the last few years?
- What are the recent investments?
- Do you have any current contracts or long-term commitments?
- What are any outstanding liabilities or disputes?
On the motivation of the transferor
- Why did you decide to sell?
- How long has this project been in the planning stages?
- Are other buyers in discussions with you?
- Would you like to stay with the company after the sale, even temporarily?
- What do you plan to do after the sale?
Signals to observe during the first meeting with the transferor
Certain elements can alert you positively or negatively:
✅ Best practices:
- The transferor provides you with clear and precise answers;
- He is open about the company's situation (strengths and weaknesses);
- He shows a real desire to transfer the business under good conditions.
⚠️ Warning signs:
- The transferor remains evasive or refuses certain subjects;
- The atmosphere in the company seems tense;
- Documents are difficult to obtain;
- The seller does not seem really keen to sell.
After the meeting: what to do?
If the first meeting with the seller went well and you remain interested, here are the next steps:
1. Make a quick return
Within 10 to 15 days of the meeting, it is recommended that you express your interest or withdrawal from the process. Reasonable feedback is appreciated and demonstrates your professionalism.
2. Prepare an indicative purchase offer
If you wish to go further, you will need to make a non-binding offer, often called a Letter of Intent (LAW). It must include:
- An indicative purchase price;
- Financing arrangements;
- Payment terms;
- A resumption date is being considered.
A period of 3 to 4 weeks is generally allowed to submit this offer.
3. Initiate the Due Diligence phase
If the offer is accepted, a thorough verification phase (Due Diligence) is launched. It will allow the information transmitted to be confirmed or not and any potential blocking points to be identified.
Strategic advice: Don't get eliminated too early
Always keep in mind that other buyers may be in the running. The goal of this initial meeting with the seller is to avoid being excluded from the process.
Demonstrate that you are a serious, organized partner capable of seeing the project through to completion. The transferor's trust is a key factor in moving forward.
Conclusion: the first meeting with the transferor, a decisive step
A successful first meeting with the seller is about more than just asking questions. It's about establishing a constructive dialogue, gaining the seller's trust, and laying the foundation for a successful business takeover.
As a buyer, you must be curious, respectful, strategic, and compassionate. Proper preparation, an open stance, and the ability to adapt to the seller's approach will make all the difference.
Remember: this meeting is often the gateway to a life project, for you as well as for the transferor. It therefore deserves your full attention.
