Selling your business? Who will buy it? Find out..
In the present economic climate, qualifying your buyer is important
You have spent many years, tons of sweat and tears getting to where you are. Now you have decided it is time to sell, so who wants to buy and why? The small business genre has gone from a cottage industry to a desirable entity. So, who are the buyers and what kind of profile should you expect?
The King is retiring, long live the King.
As within the hierarchal families that produce kings and queens, passing the reigns of a business to a member of the family can be of benefit. Why should this be so? Well from your customer’s point of view it will provide a sense of continuity. If you as business person are respected then a member of your family will hopefully garner the same respect.
It may be that, as with royal dynasties a certain member of your family has always shown interest in your operation. Possibly they have at times assisted you with the running of it. If you have unknowingly groomed them, then they may be the best buyer you could find.
Bids from your competitors
You may have spent years battling with your competitors for your sales. Now of course there are those who will want to take advantage of the situation if they know you are selling. Genuine competitors may find the buying of your business an easy way to expand their operation. If you have had your business appraised by a professional business broker they can offer deals to any competitors using confidentiality clauses to protect your assets from abuse.
The foreign interest
The United States is founded on a philosophy of everyone being able to succeed if they are prepared to work for it. This will ring true for the immigrant who is looking to be his own boss. It would be true to say in every country in the world those who are classed as immigrants more often than not, run their own businesses.
Historically these buyers, due to their willingness to work long hours, succeed where some would fail and often times will have funds to buy a business because their specific community will finance them. Use a good business broker to make sure their outlook is compatible with yours and that of your customers.
The enthusiastic Individual
This is usually the midlife group, they are from 35 to maybe 45 years old and fed up with, or looking to retire from their present employment, they have the finances to now live their dream. Their dream of changing their job to one of being the boss is exciting, as long as they realize the workload involved in running a company.
They are often the target group for many vendors. To make for a happy and successful sale make sure their expectations are in line with you own.
Financial and synergistic buyers
These two groups seldom involve themselves with the small business. Synergistic buyers are those who would be looking to buy to incorporate your business into their own operation. Not because they are competitors but by adding your niche alongside their own they can expand. These buyers will normally only be interested in the mid to larger sized businesses.
Financial buyers again target bigger businesses, but do offer a way for the seller to make money and retain a modicum of control in the day to day business operation. They can be willing partners provided you meet their financial needs.
Selling your business to the right buyer
In all identifying your buyer is important and really it all boils down to “Are they financially qualified and are you willing to sell to them?”. If you are serious about selling your business then having the assistance of a business broker will help you access the wide realm of financially qualified buyers.