13 Mar Selling a Business – All You Need is a Buyer?
They key to getting a great price for your business is this – multiple, high quality buyers that are all bidding at the same time.
Think I’m just arguing for my own benefit? Consider these things.
First, there are a LOT of buyers out there. Not sure you agree? Think about it. If you’re a larger business, your buyer pool includes other companies around the world (there are millions of them) and private equity groups (thousands of them in the United States alone). No matter who you are or what you have, if your business books at least $1 million in annual profit then there will be buyers of both types that have interest in you.
The key is to find a way to find them and negotiate with them in a manner that puts the leverage on YOUR side.
If you’re business is smaller, individual buyers will be your primary buyer type. Again, there are scores if individuals that want to move from employee to employer. You just have to work a process that locates multiple ones with money. Again, they’re out there, you just have to work the right process.
Second, there’s plenty of money “out there”. The key is to find buyers with the money that is necessary to pay you a good price. Again, it’s out there in spades, you just need to know how to find them … and do so in a manner that will attract them and encourage a good price.
Is it a magic potion that we sell? No. But some specialized knowledge and experience in this arena … and a lot of hard work … is the simple recipe.
To be sure, a single buyer will not get the job done. If you want to sell and you only have one buyer, who really has whom? You have no negotiating power.
The key to good deals is to have options. Only by having multiple high-quality and highly motivated buyers bidding against each other will you truly have options and negotiating power. To do this, you’ll need help. You can’t do it along. It’s just a fact.
So, if I may be so direct, get the “I just need to find a buyer” out of your head. It’s not nearly enough to get you what you want and deserve.