The Power of Video Interview of Owners During a Business Sale

The Power of Video Interview of Owners During a Business Sale

You may find yourself in a position where there are dozens of potential buyers who are interested in learning more about your company and making an offer. Unfortunately, many of the prospects want to meet the seller before doing so. Of course, scheduling dozens (or sometimes even 50+) face-to-face interviews is nearly impossible. This leaves the business owner with the option to either narrow down the list to only a few potential buyers, which limits the number of offers they receive, or prevents them from having to go through the rigorous and stressful process of daily visits with potential buyers.

The good news is there is a better way — video interview. The video interview is a great way to answer all of the basic questions about your business that a potential buyer may have. It allows the potential buyer to “meet” you and learn about your business without you having to spend countless hours directly meeting with each prospect. In this review, we discuss the power of video interviews for sellers during a business sale. 

What is a Confidential Video Interview (CVI)?AdobeStock 237536783

A confidential video interview (CVI) for mergers and acquisitions is a videotaped interview of a business owner in which they describe their company that is listed for sale. The video interview(s) is presented to potential buyers. It may include a range of topics about the business, including but not limited to:

 

  • A tour of the facilities
  • FAQs and answers
  • Employee information
  • Business processes
  • Expenses
  • Ownership involvement
  • Customer concentration
  • Company History

 

Any potential buyer who views the interview is often asked to sign a non-disclosure agreement to protect the private information that is presented in the video. This keeps the information confidential and holds any party who discloses the information liable. 

What are The Benefits of a Video Interview?

The benefits of video interviews include the ability to reach more potential buyers, save time, and establish trust with potential buyers. Additionally, potential buyers are able to see your facilities without visiting. 

The Seller is Able to Reach More Potential Buyers

As a seller, you want to reach as many potential buyers as possible. This significantly increases the chance of receiving high-priced offers for your company, which creates competition for others who are interested and raises the offer price even higher. Video interview allows this to happen as more potential buyers can quickly and effortlessly learn about your company directly from the owner in video format. 

The Seller is not Tasked With Dozens of In-Person Meet and Greets

The sale process for business owners is stressful enough without having to meet with everyone who is interested in possibly making an offer. The good news is that video interviews greatly limit (or eliminate) the need for in-person meetings before the due diligence stage. You can more effectively display your company’s information without spending countless hours with in-person meet and greets. 

Potential Buyers Can “Meet” The Seller

As discussed above, a video interview means less time to meet with potential buyers, which is a huge advantage. However, this is not to downplay the importance of meeting with potential buyers, or, more specifically, the importance of meeting you (the business owner). With video interviews, they have an opportunity to learn about the company from you and learn critical information such as how involved you are willing to be with the transition and what the facility and daily operations look like. 

Potential Buyers Are Able to See Your Facilities

The primary reason many prospects want to meet you is to see your company facilities, such as office buildings, factories, warehouses, etc. With an on-camera tour of your facilities, potential buyers can more conveniently visit your facilities (virtually). This provides them with the information they need to comfortably make an offer for your company. Once an offer is accepted and due diligence begins, then the buyer can visit in person. This means you (the seller) only have to show the facilities once, rather than dozens of times. 

How Does a Seller-Side Video Interview Work?AdobeStock 416595026

The seller can schedule a time to record the video interview with their business broker (see below). The broker will prepare a series of questions to ask during the video interview. The interview may start with a sit-down interview in question and answer format at the business owner’s desk in their office. 

Afterward, they may tour all of the facilities. The broker may ask a series of questions during the tour and have the business owner explain each part of the offices, warehouse, etc., along with explaining work processes and employee roles as well. Keep in mind, every video interview is unique and personalized according to what works best for the individual company and owner.

Who Films The Video and Asks The Interview Questions?

The business owner’s business broker is most likely to film the interview and facility tour. They may also ask all of the questions as well. In some cases, the business owner themselves may film the interview, or they may hire a professional videographer to do so for them. The broker, a member of the brokerage term, or an outsourced contractor may edit and shorten the video for better viewing.

However, in most cases, the broker handles these tasks as they understand what questions potential buyers most want answers to and how to ensure the best elements of the company are on full display. Of course, the broker is also in charge of showing the video to potential buyers along with a confidential information memorandum (CIM) after the potential buyer signs a non-disclosure agreement (NDA). 

Sigma Mergers and Acquisitions Uses Video Interviews to Help Clients Sell More Effectively

Sigma Mergers and Acquisitions have helped sell 600+ businesses. In well over 90% of cases, our clients sell for fair market value or greater. This is due in large part to the effectiveness of our video interviews. Contact us today if you would like to learn more about video and the sales process overall. We are also glad to provide a no-cost, no-obligation valuation as well.

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Scot Cockroft Business Broker
Hi, I’m Scot Cockroft.

When I founded Sigma Mergers and Acquisitions back in 2003, I had sold my business the year prior.

Now, that can sound good, but let me tell you, back in 2003, it was not easy to sell a business. Not that I’m saying in modern day times it’s easy to sell a business, but back then I interviewed broker after broker after broker, and no one was interested in actually seeing the value that my business brought to the table.

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Sigma is a the leading business broker in with Corporate offices in Dallas/Fort Worth with roots from 1984. Over 600 businesses sold in Dallas, Fort Worth, Texas, Oklahoma and across the South. Sigma provides full business brokerage services with NO upfront fees. We provide Market approach business valuations for business sales. Sigma is passionate about helping business owners achieve their goal of financial security. Contact us today for a free no obligation business valuation. We are here to help you achieve your goals.

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