Once you decide to sell your business, it’s natural to want a big payoff. After all, you’ve spent years of your blood, sweat, and tears building it, so why wouldn’t you want to get as much for it as possible?
There’s nothing wrong with that and we aren’t saying you shouldn’t strive to get the most for your business, but there are other factors you should consider, like preserving your legacy and maintaining the integrity of your company.
As a seller, you should be looking for the most qualified buyer you can find. A buyer who will add value to your company and contribute to the continued success that you’ve worked so hard to build. In the end, finding the right buyer for your business goes beyond getting the highest offer possible.
We know the process of selling a business can be complex, so a good place to start is to make sure you’re attracting and finding the “right” buyer. Here are some tips to help you take a strategic approach:
Engage Professional Help
Work with experienced professionals such as an M&A business broker or for much larger publicly traded companies, an investment banker. Professionals such as these have the expertise and networks to connect you with potential buyers.
Define Your Ideal Buyer
Consider what you want to achieve from the sale and create an ideal buyer persona. Ask yourself questions like, “What qualities or characteristics should the buyer possess?” and “What specific expertise or resources should they bring to the table?” Although it’s good to identify that ideal buyer it’s always good to keep an open mind to potential buyers that don’t necessarily fit that persona.
Keep it Confidential
Protect the confidentiality of your business during the selling process to avoid any negative impact on your operations, relationships, or reputation. Use confidentiality agreements with potential buyers and limit the disclosure of sensitive information until the appropriate time. An M&A Broker will use these tactics on your behalf.
Network
Tap into your business and industry networks to seek out potential buyers who may be interested in acquiring your business. Leveraging these industry connections could result in referrals to potential buyers. This needs to be done very carefully with confidentiality in mind as you wouldn’t want your competitors knowing your business is for sale.
Compile a Comprehensive Information Package
Create a well-organized information package that highlights the strengths, financial performance, growth potential, and key assets of your business. This package should effectively communicate the value proposition of your business to attract serious buyers. M&A Brokers will typically use a CIM (Confidential Information Memorandum) or CBR (Confidential Business Review) to convey this information.
Assess Financial Capability
Evaluate the financial capabilities of your potential buyers to ensure they have the resources and financial backing to complete the transaction successfully. Consider their track record in acquiring businesses and their ability to fund the purchase. If the buyer is an individual, you will want to be certain to determine their credit score especially if you will be financing some of the transaction.
Evaluate Fit
Even beyond the financial aspects of selling your business, when you engage with potential buyers, assess their compatibility with your business’s culture, values, and long-term goals to make sure they are a good fit with your company. You want to make sure their plans for the business, treatment of employees, and commitment to continued success are satisfactory.
Finding the right buyer for your business cannot happen overnight, it takes time and patience. Murphy Business Sales of Ohio has a proven process to help sellers find the best buyer for their business. Once we have gotten to know you, the next step of the process is conducting a business assessment and determining the market value of your company. Our process allows us to create an ideal buyer profile, so we don’t waste anyone’s time and work only with qualified buyers.
Contact us today. Our years of experience will help you navigate through the complexities of selling your business with confidence.
