Selling your business is definitely no easy matter. It’s not a simple transaction, like getting rid of that old barbecue in the back yard, or the dusty old bike taking up space in the garage. It’s a complex event during the journey of an entrepreneur, and so must be handled with a structurally sound plan.
And one of the most vital facets of such a plan, is the seeking out of the right, qualified buyers that will align with your business goals and values. Many buyers will provide you with a big payday for building your business, but who will take your company forward in the future is just as important as how much money you will get as a result of the sale.
There are a number of strategies that can be used to help you locate the right buyers and facilitate a successful sale.
It Takes a Plan to Find a Buyer
It is important to be organized when looking for a buyer. The first step in building a plan to find the right buyer is to understand and articulate the characteristics of your ideal buyer. Do you want to sell to another company, a private equity firm or an individual that will operate your business. It is also important to assess what kind of sale process you prefer. You may opt to approach a few likely buyers yourself or you could hire an M&A advisor or to help you find the right buyer.
What Type of Buyer Do You Want
In order to find the right buyer you first need to understand the various types, which include a variety of private and public companies, private equity firms and wealthy individuals. Each buyer will have different motivations. Some will keep your company as a stand-alone business, others will add it to others they own to get customer and cost efficiencies and some will look to buy more companies to add to yours to make it even bigger.
Once you decide what type of buyer you want, it is time to create a marketing plan that outlines the strategy for finding the right individuals to speak with for each potential buyer. This part of the process will also include research on the potential buyers and their history of buying companies in your industry as well as contact information for each buyer.
Tips for Finding a Buyer for Your Business
Selling your business can be a difficult and stressful process. Not only do you need to make sure that the buyer is reliable and trustworthy, but also that they are offering a fair price for your company. However, with the right guidance and preparation, finding a buyer for your business doesn’t have to be an overwhelming experience. Here are some tips to help you through the process.
Don’t wait for a buyer to come to you
Get proactive and start looking. Start by making a list of potential buyers that would be interested in your business, such as people who already own a similar business, potential investors, or companies looking to expand into your industry.
Talk to an M&A Advisor
Mergers & Acquisitions advisors are well-versed in the process of finding buyers and can be an invaluable resource throughout the sale process. They know where to look for buyers and what they should be looking for.
Work with a n Advisor that can manage buyer relationships
A good M&A advisor will be experienced in managing buyer relationships. They should also be able to coordinate all of the steps associated with the sale process.
How Destined Can Help You Find a Buyer for Your Business
At Destined, we’re a collective of seasoned M&A advisors that have experienced the exhilaration of a successful business sale – both in our personal careers, and in the guidance we give to entrepreneurs like you.
What’s more, we understand that selling a business can be stressful, so we remove any unnecessary complications by providing tailored support. From creating an accurate and detailed CIM to matching you with the right buyer, we make sure that you have the best chance at a successful sale.