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. Finding the right buyer is the key to a smooth transaction; it also will contribute to the continued success and growth of the business. When deciding who the best buyer is for your business you first should take a look at what kind of business you’re offering.
The first thing you should do is get your business affairs in order. When a buyer evaluates a potential business, they are looking for evidence that the business has been cared for and will be handed off to them in its best shape possible.
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 Business 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.
Financial Buyers are primarily interested in the cash flow produced by your business, so have some data at the ready to show profits.
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.
Not only should you have this information ready for them to review but it would be a good idea to fully understand this information in case they have in-depth questions — and they will.
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.
This type of buyer will often be looking for your business in particular so having your business listed on an online business directory can help them find you more easily. They know what they’re looking for, you just need to get your information online so they can find you.
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. Business-for-sale sites are one great avenue for listing your business. According to recent industry reports, 70% of all searches by business buyers looking for a new business are now done online