Articles

Many business owners think of their business as the child of their hard work and perseverance, and for good reason. This sentimental attitude towards the business means you don’t want the wrong person taking over after you sell. Keep reading to find out what types of buyers you can expect to encounter when selling a business so you can get a good idea of what you are looking for before starting the search. 

Relatives and Friends

If you run a smaller, family-oriented business, there might be one or multiple family members interested in taking over the business. Business owners passing ownership on to a younger, enthusiastic member of the family happens quite often. This is because a family member is someone you can trust, and if they have been working for the company for a few years then they most likely have good knowledge of the industry and the inner workings of the company as well. This option can give you peace of mind that the company is in competent and trustworthy hands. You may also have friends that have been working for or with the company for some time. This can be a great option for the same reasons. 

Individual Buyers

There are many wealthy individuals from the corporate world that look for businesses to buy. These individuals are well-versed in almost all aspects of business because of the years of experience they have. Be cautious of this type of buyer, not all of them are created equal. Some individual buyers may have gained their wealth through avenues other than owning a business, and thus don’t know how much time and effort is required to make a business succeed. We call these types of buyers ‘dreamers’ because they only have an idea of the potential success of the business, with no real plan of how to get there. 

Competitors

A competing company in the same industry may be interested in acquiring the business to scale their own company up. Odds are that this competitor has in-depth knowledge of the industry and how much your company is worth. This is a great way to ensure you are getting the most value out of the sale. The competing company has incentive to pay a fair price because of how it will help them in the future. However, you must keep in mind that oversharing to these competitors can hurt your ability to sell. The last thing you want is for the competitor to gain access to company secrets by faking interest in buying the company. 

We’re Here to Help!

Looking to become a business owner in 2022? At Murphy Business, we understand how overwhelming and complicated buying or selling a business can seem. Finding the right business to buy or the right buyer to sell to is a lot of work. That’s where we come in. Our experienced team will help you find the right buyer for your business or the right business for your buck! 

Contact us for more information and connect with an expert today!