Transactions fall through for different reasons. Finding a good buyer lowers execution risk and improves chances of getting to the finish line. This is just as important as the money terms involved.
Look for a track record of investing and M&A experience. Seasoned professionals know what they want and have a higher chance of closing. First-time buyers have unforeseen circumstances or obstacles they are trying to learn and navigate.
Typically, you want buyers with industry knowledge; at the same time, be wary of buyers in the same industry or an adjacent industry as it presents a clear conflict of interest during due diligence.
Be clear whether the buyer requires external financing. External financing sources can be very fickle regardless of how certain it may be at the outset.
Any additional hoops to jump are hurdles to the deal. Institutional buyers, both strategic and financial, would have several investment committee approvals to go through.
Understand the time frame and what the buyer is looking for at each stage of the investment process. Why did deals fall through in the past? What were the key sticking points?
Some buyers enter into termsheets casually and view due diligence as an opportunity to renegotiate investment terms. You are most susceptible to being pressured into a renegotiated deal during due-diligence.
If this is important to you, then make sure you understand buyer intentions. Strategic buyers will integrate the business into their enterprise; financial investors will 'flip' or exit after a brief period. Either way, the business will look very different in a few years.
Just as you would ask for references before making a key hire, you would want to ask the buyer for references as well.