Finding The Right Buyer For Your Business

Know what you want

Ask yourself who do you want to take over your business?

What do you want from your exit?

When exit planning, you need to know if you want your business to continue, and the new owner to nurture your company in the same way you have. Finding someone with the same values as yourself will give you the confidence that not only your business but your team will also be looked after and able to thrive.

You will also have to consider if your company can be bought by a competitor or someone in a similar industry. Once you understand what you want from your business, you’ll be able to find an appropriate buyer that matches your needs.

Ensure your business is ready to be sold

Now, you’ve figured out what you want from your business sale, you can ensure that you have everything in order to appeal to your ideal buyer. Get your house in order and ensure that all your books and accounts are aligned and presentable. This will help make your company look more desirable and you can generate more value for your business.

Furthermore, you need to guarantee that all problems that a buyer might find in your business are resolved or easily fixed once the sale has gone through. Anything you find, a buyer is sure to see as well. Putting yourself into a buyer’s shoes will help you understand what they are looking for.

A financial buyer will want to see the potential for a profitable investment. These can be private equity firms or venture capital firms and often the becomes a route to provide significant investment for your company’s growth. In these situations, business owners can stay involved for a short period of time to oversee the change before exiting completely.

A strategic buyer will want to be able to capitalize on the synergies of combining businesses such as expanding operations (they are likely to be a competitor or in a similar industry to you or even a supplier or customer). The objective is to generate more long-term shareholder value.

Smaller businesses can be attractive to someone who wants to take on an existing business even if they have no relevant experience in that industry.

Knowing who you are selling to will help prepare your business for the sale.

Create your business listing

Once you have prepared your business for sale and you know what kind of buyer you’re looking to attract, you can prepare a listing for your business. This is likely to be the first thing your buyer will see, so you need to ensure that you grab their attention and make yourself desirable.

Emphasise the strengths of your business. Be clear, concise and make sure you are writing it from a buyer’s point of view. If you were going to buy a business like yours, what would you look for in a listing? What would you want to know?

Be professional and include all essential details. Ensure that what you include will help you get the most value for your business. Working with professional advisors will help you to optimise the offer, attracting the right buyers and attaining the best deal for you.

When preparing your business for sale and finding the right buyer for your business you need to ensure you know what you want from the sale. Manage your goals and don’t be afraid to walk away from the deal if it is not the right buyer for you.

For more information about planning your exit and other exit options available to you read our Exit Planning page.