| 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! |
