There are a number of ways to identify potential buyers and I thought I would share with you three ways to get you started.
If you’re thinking that once you’ve identified potential buyers for your business that the hard work is over, you’ll be mistaken. The hard work is only just beginning.
Believe it or not, you are most likely to already know who your potential buyers are likely to be. I didn’t believe that at the beginning of my business sale process but only months later I was a convert! Once you’ve identified potential buyers, the next step is to find out how serious they are and discover whether or not they can afford to buy you (in cash terms) and most importantly actually want to do the deal.
But I’m running ahead of myself here, let’s go back a step to how to identify buyers:
1. The easiest potential buyers identification is to look at your competitors. Perhaps they are looking to consolidate their market position, are envious of your customer list, or want to employ you and your people for their talent.
2. Another potential buyer type could be an established company that is looking to get into the market space that you are smack in the middle of. These are regarded as new entrants to market. Most likely armed with a war chest for acquisition targets and lacking commercial experience of your marketplace.
3. For the third potential buyer type, it’s time to consider the global market. It there a similar business to yours in the same market in a different territory? Not quite yet a competitor and certainly not a new market entrant.
So there you have it. Obvious isn’t it but don’t overlook the low hanging fruit potential buyers, they are the most likely winners in the end. With these three different buyer types, you should have the beginnings of a good list that will need qualifying.
Good luck with your identify potential buyers process!
Joanna Miller, Co-Founder of Business Wand, helps business owners navigate their way through the start to finish process of selling a business. Her specialty is helping owners understand how to prepare and make the most of their business sale process to maximise their company’s value. To understand how you can sell your business quickly for the highest sales price, purchase her book, “How To Sell A Business: The #1 guide to maximising your company value and achieving a quick business sale”