How Do I Find a Buyer For My Business?
That’s easy. Hire an experienced Business Broker to market your business and don’t try to do it yourself.
potential buyers!
Making the decision to sell your business is not one to make lightly. However, once you have arrived at the conclusion that you want to sell your business, it is essential to hire an experienced Business Broker to market your business and don’t try to do it yourself.
While it would be great if selling your business was as easy as hanging a “For Sale” sign in your window, the reality is that it is much harder. A professional and experienced business broker has the knowledge and the experience to properly and (most importantly) confidentiality market the sale of your business. This not only affords you the discretion you deserve, but ensures that all potential buyers are properly vetted.
So just how does a Scottsdale business broker find a buyer for your business? By pitching it to the right kind of buyers:
Here are some of the things I do to market my listings and attract potential buyers:
1. I prepare a multi-page Confidential Business Review (CBR) to show to qualified buyers.
This document gives potential buyers a summary of the business and its financial condition. The confidential business review, which is often also referred to as “the book” or the sales memorandum, provides detailed information to prospective buyers. The benefit of providing a CBR to interested buyers is that they will have all the information they need and want right of the bat and won’t have to wait around for information to be collected and presented to them. A delay in providing pertinent information could lead to buyers losing interest or possibly deciding to pursue another business that has information readily available. Therefore, a confidential business review document is of utmost importance.
2. I pitch the business to all of the sales agents in my office.
How does this make me different from other brokers? I am not afraid to network and promote your business with other agents. As your Certified Business Intermediary, I feel obligated to get your business out to as many potential buyers as possible. And while I may not have a suitable buyer on hand, one of the other agents just may have one. Networking is truly a fantastic way to spot qualified and vetted potential buyers for your Arizona business.
3. I pitch the business to Arizona Business Broker Association members at our bi-weekly meeting.
I am happy to co-broke with my fellow members. By the way, not every Business Broker in town will co-broke. This goes hand in hand with what I said above. Only through maximum exposure will your business attract the maximum amount of prospective and qualified buyers. Any experienced and successful business broker will not be afraid to work with another agent for the good of his or her client.
4. I present the business to qualified buyers in my database of buyers.
Because I have a vast database of potential and interested buyers that I have accumulated, I can present your business to them as well. I will already know who may be interested or not based on my experience working with them. This way I won’t waste any of your and my time presenting your business to those who may not be interested because your business covers the wrong type of industry, is in the wrong location or is too expensive for them. Having a substantial pool of buyers already at hand, is another benefit of hiring a local Tempe business broker to facilitate the sale of your business.
5. I place the business on the most popular Business “For Sale” websites.
While this may sound easy enough, it is essential to pick the right sites and to phrase the ad just right so it will attract the most buyers possible. I know how to do both. My years as a business broker and a business owner have taught me what buyers respond to. Just putting your business out there on any website won’t do you much good. It needs to be done properly.
If appropriate, I also do the following:
6. I market the business directly to strategic buyers via a customized marketing program.
Strategic buyers are companies that may have an interest in expanding by acquiring other businesses in their industry. If your business is in the same or a similar industry as already well-established companies, it could be of tremendous interest to them if they are seeking an addition to their portfolio or are planning on expanding. To get your business sold, I will explore every valid avenue.
7. I advertise in trade magazines and on trade group websites.
Depending on what type of business you are looking to sell, this can be a great strategy for getting the word out.
8. I place ads in national publications, such as the Wall Street Journal.
Typically, I only advertise larger businesses in national publications because they attract buyers who are only looking for larger businesses.
As you can see, it takes a lot to market a business for sale. Even doing all these things, it is still a challenge to find a qualified buyer. However, I have found by doing these things, I have had a very good success rate in getting my listings sold.
If you would like to explore the possibility of selling your Arizona business or are interesting in buying a business, contact me at 480-707-7721 or philreeseaz@gmail.com.