17 Feb Finding Prospective Buyers When Marketing Your Company
If you are heads-down intent on marketing your own company when you put it up for sale, you may not realize how difficult and time-consuming a task it can be. Brokers themselves can spend literally thousands of hours and over a years worth of time working to find a buyer for any particular type of business. However, we must consider that the landscape today is much easier than it was 15, 10 and even 5 years ago–mostly thanks the the miracle that is the Internet.
Before you consider taking your business to market, you should certainly have positioned your company properly prior. This means listing both tangible and intangible assets, revamping financial statements and formulating a comprehensive and Confidential Business Review. The final step generally involves finding a premium buyer for your particular company.
When it comes to seeking out a buyer there are multiple sources and routes which should be undertaken when scoping out the field. For instance, knowing what differentiates your corporation from other organizations within your field may be an asset when you pitch the idea of selling your business to another company. There are a number of places to start when beginning to pitch the relevancy of your company to individual and business investors. This list could include, but is not limited to, the following:
- Acquiring companies within your industry or niche
- Private Equity Organizations
- Regional or National Buyers
Depending on the specific assets you hold within your company, you may be able to completely eliminate one of the aforementioned potential buyers. Or, in an even better case, target the buyer in which a particular niche subset exists where your company may be a very viable asset to expansion. In order to sell to a buyer, you need to be able to think like a buyer. You need to learn how to perform proper business sales negotiations. What are the “hook-points” which might bring a buyer in? How would you say your company adds value to their organization? The list goes on and on, but it is of utmost importance to know what you are selling and know your target audience when you intend to sell to them.
Having a complete understanding of your organization’s strengths, makes it much easier to sell your company when the time is right. Finding the buyers which will pay premium for your company may seem easy on the surface, but in reality it can be an extremely time-consuming task. Be sure you are ready for the challenge or you can simply discuss selling your company through a qualified broker. That might be easier.