FINDING THE RIGHT BUYER

Finding the right buyer is one of the most challenging aspects of exiting and selling your business. If you’re lucky it can take months, but be prepared for it to potentially take years.

The acquisitions and disposals market is very much about who you know. Having good professional advisors in your corner will expedite the process. They can help make introductions and their networks are often key to opening doors.

When selling to an external buyer, it's crucial to market your business in a way that shows its value and unique selling points. Tell your business’ story.

It’s also important to be clear about what you expect of any potential buyer. Your expectations in relation to your team, operations, and brand should all be clearly articulated.

Stay close to your sector//

Knowing who the key players in your sector are and who might be looking to acquire can give you a huge advantage.

Shortlist target buyers//

A professional advisor can help target buyers, using specialist databases with financial intel. For large companies, the stock exchange may be used and may offer even more enclosure. This list is compiled alongside the sellers so nobody is contacted that the seller has not approved.

Your first approach//

Sending a one page business summary to potential buyers - often known as the teaser - can be your first steps in attracting buyers. Telephone, email, LinkedIn, professional contacts, and networking; use all the communication channels available to you. The name and details of the business are not released until a confidentiality agreement is signed.

Talk to multiple buyers//

It’s good practice not to jump into the first offer you receive. You should aim to speak to as many prospective buyers as possible to achieve the best outcome.

Stay focused on building your business//

It’s easy to get caught up with the process of finding the right buyer. But continuing to build a great business is a key part of it. With a strong brand, great reputation and a growing customer base, word travels and you will start to be noticed.

Whether it’s a trade buyer or an investor, it’s important for you to do your own due diligence

Do your own due diligence on the buyer//

Do Your Own Research

Do you have any history or past disputes with the buyer? Do you have any professional contacts that have worked with them? First impressions go a long way.

What Type Of Buyer Are They?

Are they strategic buyers that want to expand their own operations? Are they financial buyers who see the potential for a profitable investment?

Do They Have The Capital?

You can research this up to a point on Companies House and subsequently through the due diligence process. Along with the cost of the down payment, they should have the capital to invest in the future.

Consider Your Legacy

Look at the buyer’s business from a people perspective. Do they align with your values? Will they preserve your legacy?