Your potential buyer should the sole focus as you prepare to sell your business, and getting the right buyer
on board is imperative to making your sale a successful one.
In order to get the right acquirer, you need to assess your company as objectively as possible and see what kind of buyer will be most attracted and suited to your company at all. Will the buyer in question be looking to make a strategic acquisition so as to complement his existing portfolio, or to absorb his competition? Or will he be aiming to grow his company into new geographic or consumer markets? Will the acquisition be a profitable investment, or will it be another run-for-profit kind of takeover?
Whatever the case is, you will come into content with numerous buyers, all with different agenda, but it is down to your needs and wants, and up to you to pick the right one to take over the company upon sale.
You cannot expect the right buyer to magically come to you; you need to be proactive when it comes to the sale of your own business! Whether this is via an agent, or on a platform like Bizsale and Business Sale Report, the way in which you describe and really sell the business is vital, as that will be the starting point to attract potential buyers across the market. Ensure you provide all the necessary details, and home in on the USPs that define your business.
Of course, it is all about networking to get your business across to as many people as possible, but the sales process will equally force you to get all your financial statements and papers in order, and ready to progress with negotiations as soon as possible. Having the documents in top form will indicate to buyers that you mean serious business and will attract those on the same wavelength as you go forward.
A routine buyer will know that their best shot at getting the best deal from you will be to isolate you from all other potential acquirers – don’t let that be the case! It’s good to have an open mind when it comes to surveying all buyers, as it will help you gauge their capabilities and interest in the business itself, and how equipped they are to take it on in the future. Moreover, exploring all options and speaking to all buyers will allow you to see which deal will be the most profitable for you; naturally, staying open goes hand-in-hand with networking to assess the competition for your business at large.
Highlight your strengths
Your strengths make the crux of the business sale, and so it is important to show them off when speaking to savvy buyers. An overarching story that defines the ethos of your business is extremely important, as it attracts buyers with the goals, mission, and values that underpin your business, thus making it appear more established and sustainable.
Beyond this, it is important to tailor the presentation of your strengths to each individual buyer to really draw them in. This is where research is vital, as it will tell you specifically the buyer is after, and therefore allow you to display your company in the right light and with the right strengths to draw in buyers appropriately and accordingly.
Don’t forget your weaknesses
As much as you’d like to only speak about your company’s strengths, it’s important that you also discuss its weaknesses, and not simply gloss over them. Concealing issues will put off buyers as the lack of transparency can forge a bond of mistrust and unwillingness to negotiate further; moreover, serious buyers will conduct their own due diligence into the company which will undoubtedly uncover weaknesses, so it’s always best to be upfront with problems when possible.
Being honest with weaknesses will make your asking price for the business more realistic to buyers who will consider it more seriously, and disclosing issues in the beginning will allow you to craft a story behind it to help sell your company’s narrative as it progresses through the negotiations.