For those people who are considering selling a company, marketing that company is one of the most important steps they’ll take. Like all other products and services, a business can be marketed in such a way that it sells quickly and for a fair price, and fortunately, the basic rules of packaging a business for sale are relatively simple. Two of the most important aspects of this process are identifying a buyer and tailoring the business package to target that buyer.
Identifying a potential buyer is not an extremely complicated endeavor, because, in many cases, buyers fall into one of two categories: financial or strategic. Financial buyers, as their label suggests, are most interested in the financial aspects of a business. Their primary goal in purchasing a business is to search for a company that is capable of generating instant revenue. The second type of buyer, the strategic buyer, is somewhat less shortsighted than the financial buyer. Although a business’s finances are certainly an important determinant, they also take into account many other long term factors as part of their decision. These types of buyers are also interested in a business’s potential to be used in future growth, mergers, and other business moves.
After a buyer has been categorized as either strategic or financial, you’ll have to tailor your sale package to meet the specific interests of that type. For financial buyers, your sale package should focus mainly on financial information, such as revenue, profits, costs, and wages. For strategic buyers, your package should include basic financial facts, but it should also include the other aspects of your company that a strategy-minded buyer might find useful. A common mistake in targeting buyers is to simply present both buyers with the same sale package. While this might seem acceptable, it could actually damage your sale prospects because by flooding a buyer with the wrong type of information, you risk distracting them from the aspects of your business that truly interest them- the aspects that could have secured you a valuable sale.
The processes of identifying and targeting buyers can be very complicated, so many sellers choose to hire business brokers to help them through this confusing process. In addition to attorneys and accountants, professional brokers are an extremely valuable resource for helping you navigate the sale process. The expert transportation brokers at Tenney Group, for example, help to package a business for sale, connect buyers and sellers, and negotiate deal terms.