Have an existing business you want to exit soon? Are you bored with your company and want to sell it, and explore new opportunities?
As Richard Branson says, “Business opportunities are like buses; there’s always another one coming.” By selling your business you can have a handsome return on your investment even as you dispose of the assets and commodities.
One of the main questions we are asked as business brokers is how to find qualified buyers once you are ready to sell.
Here are three of the most common ways we’ve seen business owners reach buyers during an exit plan.
Consider Immediate Options
Have you thought about your immediate circle of friends, family and employees? You might find someone who is interested in buying off your business and is already familiar with your enterprise. A proper understanding of the branding, value, and processes is crucial for any would-be-owner to purchase the company without undervaluing it. This puts the next owner in a much greater position of success and you would also be glad to see the investment thrive outside your control.
Employees with whom you have worked are particularly strong options for some business owners. The right employee understands the strengths and risks of the business. Also, they know the input and the output, the challenges, and the dynamics. He or she may also have a strong emotional connection to a business that they’ve seen grow over time and feel intrinsically tied to that achievement.
In your exit planning, consider the business owners with whom you have competed. They might jump on the opportunity to expand their territory and build their empire in that particular industry. These prospects are already familiar with your business and have possibly even tried to learn your secrets of success. What about owning your company now? This may be an exciting offer coming at just the right time for them as well. Here’s an even deeper dive into this possibility.
Find The Right Business Broker
By far, the best way to find qualified buyers is through an experienced business broker. Successful business brokers know how to market the business to potential buyers. They understand the details of business valuation and market confidentially to save on advertisement costs. At Alliant, we will vet potential buyers to ensure they are serious about the transfer process and provide only those who have been screened and signed a Confidentiality Agreement. We also only receive a fee when we sell your business.
Exiting a business for greener pastures is a fantastic option with the right buyer and timing. Prepare adequately and take prudent steps. Remember, “If your ship doesn’t come in, swim out to meet it!” – Jonathan Winters.
If you’re ready to find qualified buyers to get the maximum value for your company, contact us today for a free consultation.