How do we find the right buyer for a business?
People are motivated to buy your business for different reasons and by targeting your marketing towards the most qualified buyers, you maximise the chance of selling whilst minimising your advertising outlay.
Generally buyers can be divided into three groups: strategic buyers, financial buyers and beginners. Strategic buyers will usually have a similar existing business or would like to move into your market. Therefore they are looking at how well your business will fit into their own company’s plans.
Then there are the financial buyers; who specialize in purchasing a company that has a strong setup and income whereby they do not have to invest anything further. They may also be experts at identifying a struggling existing business that requires investment or knowledge in a certain area to re-invigorate and profit again.
Finally you have the start up buyers. These are the type of buyer who are keen to enter your market, however they lack the know how to start up their own company and are seeking one that matches their specific needs.
To reach these potential buyers it is a good start to begin with an experienced broker such as Alert Property Group. An experienced broker will already have potential leads and market presence, generating advertising organically.
The broker will initially look at what your plan is for sale and get a good understanding of your business and expectations. Following this the broker will look to generate the most ‘qualified’ sales leads by advertising in relevant publications. These publications can range from the brokers own website through to trade publications and newspaper advertising. It all depends on the type of business and where the qualified leads are according to the broker’s research.
The final point in finding the right buyer is the screening process. The broker will, amongst other indicators; ensure the prospect is financially qualified and is motivated to buy the business. This allows a broker to spend time and resources only with the most qualified leads in order to close a sale for:
> The ideal price for both parties.
> In compliance with other factors that may have been requested during the planning stage.
> At the client’s earliest convenience.
Contact our experienced Brokerage department at Alert Property Group if you require any information about buying or selling a business.