Selling your business is never an exact science.  Just when you think you have an interested buyer, something comes up to threaten the deal.  But sure enough, another potential buyer is waiting in the wings.  In order to direct your company’s marketing efforts effectively and sell your business to the right type of buyer, it helps to understand the various types of buyers who may be attracted to your business.  The two types of buyers who may find you through a Businesses for Sale by Owner Directory are financial buyers and strategic buyers. A third group consists of potential buyers that you already know, such as managers, employees and family.  While less common than the other three, a fourth category is selling to the general public through an Initial Public Offering, or IPO.  This is a smart move if your industry is very hot right now and you want to cash in while demand is still high.

Financial Buyers are primarily interested in the cash flow produced by your business.  Whether an individual or corporate interest, these buyers have money to invest and are looking at a variety of different industries.  In many cases, they are former executives who want to buy themselves a job by finding a company in need of their management expertise, but they can also be holding companies looking for a generous return on their investments. If you are selling to a financial buyer, remember that they will be carefully studying your company’s financial statements.

Strategic buyers are people who are interested in investing in your company because it fits into their long-range business plans.  These buyers could be in a related industry or similar company who wants to expand operations into your area.  Sometimes, because strategic buyers are usually in some type of parallel industry, they are referred to as “synergistic buyers”.  Because they already see the value in your company as a good fit with their overall plan, this type of buyer may be willing to pay more for your company. 

Finding qualified financial and strategic buyers may help you sell your business faster, but first you must promote your business to them.  One of the best ways to do this without spending a fortune is to list your business for sale in a Business FSBO directory.