Selling a Business Thoughts and Tips
Published / Last Updated on 24/09/2021
Seemingly, every week we get approached to sell our business as well as details on businesses looking to sell out to us. There are hundreds of sites, blogs and videos online with tips and guides on things to do and prepare for the sale of a business and we do not propose to run through all of those tips here.
We will cover some other points in building interest and getting the message out to potentially interested parties.
Networking
Get involved in as many networking events as you can. Your local chambers of commerce, professional bodies, trade bodies, industry publications, seminars, exhibitions etc. Get yourself known.
Acquisitors
Do your research on actives buyers in your sector. Who has sold, who where the buyers, why did they buy that particular business? Clearly, they may be interested in furher expansion, are they repersented in your area geographically or your sector?
Synergy
Who are your suppliers, who supplies your industry? Who are the ‘reps’ that sell their wares to you? Who are your clients or consumers, who do you sell your goods and services to? There may be opportunities for your suppliers to reduce overall costs or increase scalability in buying your business to provide a ‘one stop shop’. The same can be said for your customers, those you supply or buy your type of goods and services, again there may be synergy by bringing in your service to their business for a ‘one stop shop’ to reduce costs and supply their service more efficiently.
Intermediaries
As with any industry, there are good and bad business sale brokers. Many simply throw as much ‘dirt’ at the wall and hope it sticks. If there is no upfront fee or no structure the how can they afford to dedicate time to selling your business if there business model is floored. We suggest you look for an intermediary that has an obvious process both in terms of their ‘pitch’ to secure you as a client but also a structured approach to data gathering about your business then producing marketing literature, brochures, targetted research, market trends and shortlisting potential aquisitors with possible candidates for a ‘beauty parade’. If they ask for a fee and exclusivity for a year then this may also indicate a structured approach.
What Do You Want?
You need to know what you want. Do you want to sell outright? Do you wish to stay in the business? Do you want equity participation in the ‘new’ venture? How much?
