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!
