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[H1075]How To Find Buyers

by Harvey Zemmel Zemmel, Har

As an entrepreneur you've put your blood, sweat and tears into building your business. You've worked 60, 70 or even 80 to 90+ hours per week trying to get new clients and retain them so you can increase your revenues. Sooner or later you'll consider selling your business along with all its worries and responsibilities. You'll fantasize about living the rest of your life in an exotic tropical paradise.

But then you wake up and come back to reality.

Selling your business is not as easy as you thought. You begin to realize that selling a business for a price you deem fair and equitable isn't guaranteed. In fact, the shocking statistic from my research highlights that 75% of businesses that go to the market DO NOT sell.

Why?

Because they either don't receive any offers or they don't receive any offers they consider acceptable.

Potential buyers won't flock to your business if you simply put up a for sale sign. Here are my top secrets to help you find the best buyers for your business…

5 Questions You Must Ask Yourself When You Want to Create Your Own Hit List of Buyers For Your Business So You Can Maximize Your Exit

1. Who has similar businesses that are most likely to become your top competitors? And more importantly, do they have expansion plans? To answer these questions you must think about your networks and the people you associate with in your industry. You must also read newspapers and your trade industry magazines.

2. What companies in your industry have recently undertaken acquisitions? If a company has recently undertaken acquisitions, it means they're in acquisition mode. They're looking to buy. They want to grow. So these are the companies that are your best potential buyers.

3. Who has surplus cash? The more cash a company has available, the sweeter your business offer becomes. To find business owners who have ample cash to buy your business, again you must read trade magazines. You must talk to your suppliers. Generally they know who has money and who doesn't.

4. Which companies in your industry have announced a public offering? From a business seller's point of view, when a company announces that they are going public, that's great news for you. Why? Because they are desperate to expand their business before going public. They want their potential investors to seek growth opportunities. They want the stock to go up. So when you discover a companies going public, get yourself organized quickly. This is the time you need to think about how you can match up with those particular companies and approach them because they're ready for serious growth before they go public.

5. Who sells to the same customer as I sell to? Financial buyers acquire ninety-five percent of all private businesses. This question will help you target strategic buyers. These buyers are looking to create larger, greater, bigger opportunities. They don't care so much about your profitability. Although chances are you will sell to a financial buyer, you can strike lucky and sell to a strategic buyer if you ask yourself this question and complete the necessary research.

I've built from scratch, expanded and then ultimately sold a group of thirteen assisted living centers using the above strategies. With over three hundred and fifty staff and residents, my business was worth in excess of thirty-five million dollars when I sold it. Another one of my businesses sold for more than double its market value.

You can achieve the same results. You can find the best buyers and maximize your exit. Just remember, that the degree of care and effort you put into the sales process could have a huge impact on the price you receive and how long it will take to complete that sale. The quicker you complete the sale, the sooner you will be free to pursue your life pleasures!

There are rural auctions featuring livestock and equipment, free-wheeling automotive auctions where the rich and famous bid on rare and classic cars and Internet auctions where bargain hunters shop from the comfort of home, antique auctions and more. All of these bring excitement, whether you're placing a bid or just biding your time as a spectator. Auction sales are traditional ways for sellers to find buyers, and for buyers to find bargains.

The basic premise of an auction is to have a group of buyers bidding on sale items. Each item is presented for sale and the bidding begins, often with a set minimum amount. Gradually, the selling price goes up as potential buyers increase their bid amounts. When the gavel drops, the highest bidder is declared "winner" of that item. Then, another item is placed on the auction block and the action begins again. An auction sale can be a good way of determining the true value of certain items, especially when collectors are involved. People who really want particular items are willing to pay a top price that reflects the value.

Of the many types of auctions, the basic premise is the same. However, each type of auction has specific rules and regulations in place:

* English Auctions: The granddaddy of all auction sales, this is the basic style that pits bidders against each other in an open forum. The item goes to the person who bids the highest amount.

* The Dutch Auction: Basically the opposite of an English auction, this kind of sale has the auctioneer offering each item at a premium price, and then lowering the price incrementally until someone agrees to pay that amount. It can be a stressful game of chance, causing buyers to jump in and pay too much, rather than lose the item to someone else at the next lower price. It only takes one bid to end the sale, so Dutch auctions can be practical ways to sell items quickly.

* Sealed First Price: Similar to a "silent" auction, this type of sale involves a simultaneous bidding by all potential buyers. However, no one knows the other participants' bid amounts. Whoever bids the highest amount gets the item at his or her suggested price.

* Vickey Auctions: Bargain hunters get an even bigger bargain at a vickey auction. The person who bids the highest amount will win the item, but is only required to pay the second highest bid amount.

* The Buy-out Auction: A buy-out auction is similar to an English auction, with goods offered for sale at predetermined prices. The auction begins, and anyone wishing to pay full price may do so. The preset amount is sometimes known as the "buy now" price. If no one wishes to pay the full price, open bidding will begin. The highest bidder will take the item.

* The Open Outcry Auction: This is the type of auction usually seen in the stock and commodities markets. An open outcry auction involves lively trading at every corner of the arena. With the ever-increasing popularity of the Internet and modern communications, this type of auction is being replaced by electronic trading platforms operating over the worldwide web.

Auction sales can offer buyers a quick and easy avenue to pick up all kinds of items. Collectibles, real estate, antiques, cars, artwork and countless other commodities, both new and used, are put on the block and available to the highest bidder. These types of sales draw crowds of interested buyers, and the auction action can quickly heat up when more than one buyer is determined to win the prize. The competition can be fierce, and final sale prices can easily exceed the actual values.

Most auctions are led by qualified auctioneers who are hired for a flat fee or a predetermined percentage of the proceeds. These professionals can provide information about the community and its buying preferences, as well as hints on obtaining the highest price for one's property.

Most auctioneers in the United States are licensed by the state after completing a series of oral and written examinations. An auctioneer must be reliable, with proven integrity and a good reputation. In addition to leading the sale, auctioneers are responsible for publicizing the events and resolving any disputes or conflicts that may arise during the sale.

If you get tired of mall walking, and find that rummage sales are little more than rubbish sales, scratch your bargain-hunting itch at an auction sale. It's an exciting experience, and you can bag a real bargain on just about anything you're looking for.

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Both Harvey Zemmel Zemmel & Balvir.nh2009 are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Harvey Zemmel Zemmel has sinced written about articles on various topics from Computers and The Internet. . Harvey Zemmel Zemmel's top article generates over 1600 views. to your Favourites.

Balvir.nh2009 has sinced written about articles on various topics from Vending Machine, Computers and The Internet and Gall Bladder. . Balvir.nh2009's top article generates over 1900 views. to your Favourites.