A Quick Guide to Attracting the Right Buyer when Selling a Business
Over the last 15 years, our team have worked with a diverse range of businesses across a broad range of sectors. Every director selling a business that we work with is as unique as the companies they own, but we do see a common thread in terms of their top two concerns.
Whether the business is technology, IT services, construction, media, telecoms, manufacturing, engineering, electronics, distribution, professional services, food services, or hospitality, when selling a business every business owner wants to exit with the confidence that they have achieved the best market price and terms for their company.
Just as importantly, they want to ensure business goes to a good home. The ongoing reputation of their business and the future of the staff they’ve worked with for so long bears huge weight on who they feel is an appropriate acquirer.
So, when you’re selling a business, how can you attract the right buyer?
Profiling
Building up a picture of the ideal type of buyer for your business is vital. Not only will this profiling activity refine the sales process, it will provide you with a focus for marketing your business. Imagine your ideal buyer – what are their values and goals? Needs and preferences? What about their decision-making criteria? Create a buyer persona using similar principles to creating a customer persona and use it as your guide.
Comprehensive research
Every successful business sale includes comprehensive buyer research at an early stage. But to create your shortlist, you need access to a wide range of potential acquirers to begin with. A corporate finance company like Entrepreneurs Hub can access high quality databases featuring information on 200 million companies globally. We’ll help you narrow down your search and locate the strongest prospects. You should aim to have 50-100 buyers on your shortlist.
Quality marketing documentation
Once you’ve found a pool of potential buyers that fit your ideal profile, it’s time to develop quality marketing collateral to showcase everything your business has to offer – and gain the interest your business deserves from potential acquirers. Get expert help to develop the following:
- an anonymous overview of your business that clearly advertises your USPs
- a non-disclosure agreement (NDA) to protect confidentiality
- an information memorandum highlighting the opportunity in more detail
- a compelling presentation that can be used when meeting potential acquirers
- future business and synergy plans (if appropriate) to show buyers the scope for business growth over the coming years
What happens next?
Gaining the interest of suitable buyers is one thing but handling the negotiations and due diligence is another ball game. Seek out an experienced negotiator who can work on your behalf to get you the best price and deal. Our recent blog Negotiating the best deal for your business: 3 reasons why you should engage a corporate finance company will give you the lowdown on achieving maximum value in the sale of your business with the help only expert negotiators can provide. They’ll stand in the gap for you, handling the offers and the difficult questions with your multiple interested parties to place you in your strongest position when selling a business.
The beauty of carefully identifying and targeting multiple prospective buyers is that you have options. You can walk away if your feeling is that they’re not the right buyer for you because, after all, you want to leave your business in the hands of someone who cares about it as much as you do.
Contact us in confidence to find out about all the ways we can help you with selling a business for maximum value. Call 0845 067 8678 or email info@entrepreneurshub.co.uk
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FAQs – Selling your company
How do I sell my business?
At Entrepreneurs Hub, we talk about five key areas that make the difference between success and failure when selling your business. Read more…
How much can I sell my business for?
Determining your business’s value is more than just calculating a number it’s complex with key factors, that said the basic equation is actually quite simple. Read more…
How long does it take to sell my business?
The timeline varies depending on the complexity of the deal and how ready the business is for sale. On average, the process takes around twelve months – sometimes less, sometimes more.
While preparing your business for sale, Entrepreneurs Hub conducts in-depth research to identify potential acquirers. You’ll have the opportunity to review and approve this list before we make any approaches. Once the business is fully prepared – often the most time-consuming step, we begin marketing it. Typically, you’ll start seeing initial interest within a few months, with follow-up meetings happening shortly after.
As these meetings progress – coordinated and facilitated by Entrepreneurs Hub, you’ll begin receiving initial offers. At this stage, we’ll help you assess the strategic fit between your business and potential buyers. When you decide to move forward with an offer, an exclusivity period begins, during which the acquirer conducts Due Diligence (DD).
The DD phase typically lasts two to three months, depending on the complexity of your business. Once complete, the sale is finalised, and you’ve successfully sold your company.
How do I sell my business quickly?
Selling a business quickly is possible, but speed shouldn’t come at the expense of value or deal security Read more…
When is the best time to sell?
Selling your business is a major milestone, and the start of an exciting new chapter, whether that means new ventures or a well-earned retirement.
In our experience, the best time to sell is when you don’t need to – when your business is performing well – not necessarily tied to the calendar. That said, timing can still play a role.
Timing the Market
Strong economic conditions, sector growth, and buyer confidence boost valuations. Don’t wait for a “perfect” market – a well-prepared, well-performing business sells in any climate.
Plan Ahead (12–18 Months)
The best outcomes come from early planning: clean financials, solid forecasting and growth potential.
Spring & Autumn Are Active Periods
The M&A market is typically busier in spring and autumn while summer and winter tend to be slower due to holidays and year-end distractions. However, the unpredictability of deals and negotiations makes this hard to target. We do deals all throughout the year – the key is to work with someone who can keep driving the deal forward whenever it happens.
Financial Year- End
Selling your business well is a long process and aiming for your financial year-end milestone is a virtually impossible task. But it is worth bearing your financial year in mind as buyers will want to review the most up-to-date accounts available.
The best time to sell is when your business is ready, and you are too. With the right preparation and positioning the right timing follows naturally.
Can I sell my business online?
Yes, you absolutely can sell a business online. Many platforms specialise in connecting business sellers with buyers. Read more…