When it comes to finding a buyer for your business, you should take multiple approaches.
At Texas Business Brokers, we use multiple methods to reach potential buyers. Most importantly, we do it in a confidential manor. When creating your marketing campaign, you have two choices right off the bat, do I keep the business confidential or not?
So how do you decide if you should keep it confidential or not? If you are worried about your employees or business clients finding out the business is for sale, then I recommend listing it in a confidential manor. The issue with clients or employees finding out can cause great problems. Employees might search for new jobs and clients may worry about service, warranty, and so forth. Additionally, you may not want unsolicited visits by potential buyers.
If your business does take a hit and sales drop, it could effect your sales price. Also, it can create unwanted red flags that may scare off buyers,
That being said, there are also benefits of listing your business in a non-confidential manor.
If you have a business that is a proven brand, it may attract buyers. Companies like McDonalds, Subway, and any other business where the ownership isn’t the “face” may benefit from listing in a non-confidential manor. These are proven business that are usually successful. Most buyers will know it and it may speed up the sales process.
After deciding what way you should list your business, you need to know where to list it or how. At Texas Business Brokers we use multiple methods. Here they are:
Method 1: Internet advertising.
This is our favorite and best method to expose a business for sale to many potential buyers. When we list a business we list it on every possible business sale site.
If you are selling your business on your own, you may not have the budget to list on every site. We recommend listing your business on at least two sites, (1) bizbuysell.com and (2) bizquest.com. Depending on the size of the business, we also recommend using axial.net.
Method 2: Strategic Acquirer campaign.
Our next most successful method is what we call our “Strategic Acquirer” campaign. This approach focuses on strategic acquirers both big and small.
We target others in the industry and begin a campaign of letting them know that a business in their field is available for purchase. This is great because large companies in other major cities may want to expand into the market of the business your selling and want to acquire the company. Additionally, smaller companies might want to expand/grow through acquisition.
We first start by performing hours of research. We identify potential targets, their decision makers, and identify best contact methods. We search for their emails, telephone numbers, and LinkedIn connections.
Once we gather all the information, we begin by sending them a letter. Then following up with a phone call, followed up by an email. We repeat this over and over again until we get a no, please stop calling, or any other type of response. Remember, don’t give up easy, these people are busy and may not even see or read your communications until the 10th time you reach out. This has happened numerous times. Also, remember, you only need one to say yes and buy. Do not get discouraged!
Method 3: Strategic, but confidential email campaign
One method that is available to us that may not be available to you is a strategic email campaign. Over the years, we develop connections with investors, other brokers, and many other interested parties. We create lists of people we can notify when a business is for sale. Also, sites like bizbuysell.com have large email lists that can be utilized.
We use this method to reach a lot of potential buyers quickly. It is one of the first steps we take after the internet campaign is started.
Method 4: Strategic, but confidential print campaign
Our least favorite method is print advertising. It is an option that is not utilized very often, but we keep it in our tool kit for special circumstances.
We’ve found, printing in specific industry magazines or publications can reach buyers who are not looking actively looking. The opportunity they read may spark interest and turn them into an active buyer.
Reaching buyers is only the first step
As mentioned in past posts, there are many steps to the sales process of a business. Once you find a potential buyer, you must be able to “sell” or present the company well. To learn more about selling your business, here are some helpful items you should review.
Please contact us if you have any questions or want to learn more. – Wishing you the best, Alex Khabbaz, Managing Partner and Austin Business Broker for Texas Business Brokers.