How You Can Find The Perfect Buyer For Your Business
When it's time to sell your business, you probably wonder ‘How should I go about finding a buyer for my business?’ Finding a buyer can be tough. Many small business owners believe this is hard because they don't have a strategy to draw in serious buyers.
Exiting your business isn't just about selling. It's about making sure your legacy continues and your business does well under new ownership.
In this article, I'll show you five ways to find the right buyer and explain why this strategy might work for you and why other ones won’t fit.
How to Find a Buyer for Your Business
Use Your Personal and Professional Contacts
Hire a Trusted Business Broker
Advertise on Online Business Sale Platforms
Use Google Search Wisely
Network at Industry Events and Conferences
Strategy 1: Use Your Personal and Professional Contacts
Why It's Important: People you already know might know someone who's interested in buying your business. Asking friends, family and other small business owners is a strategy that works really well to find buyers for a small business.
Tips: Tell these people about your business's success and potential. Share this story in conversations, at networking events, and on social media. You could also make a brief information packet that your contacts can give to potential buyers.
Some Caution: As the team at bizval points out, be cautious of word getting out to competitors or key customers and suppliers - this could have negative consequences.
Unless you are being approached by them, like it happened for Nathan Hirsch from trioseo.com:
“I was lucky that I sold to one of my clients. They came to me and said they love my business and want to get into the VA space. They buy businesses, not start them, and made me an offer. The key is to build your business to be sellable. You never know when opportunities will come up.”
Want to know what makes a business sellable and valuable? Here are 9 lessons from failing to sell my business.
Strategy 2: Hire a Trusted Business Broker
Why It's Important: Business brokers can help you find qualified buyers quickly and easily. Reach out to brokers when your business is making more than 2 million a year, as this is often the minimum requirement they have to support you on your exiting journey.
Advice: Search for ‘business brokers near me’ or ‘small business broker near me’ to get a longlist of brokers in your neighborhood with a specific expertise. You want them to understand your business, what kind of buyer you're looking for and the kind of buyer they see as a great match. I cannot stretch this enough, but choose a broker with experience in your industry and a good track record. It will make all the difference.
Strategy 3: Advertise on Online Business Sale Platforms
Why It's Important: Websites that list businesses for sale can help you reach potential buyers all over the world. The global and extensive reach these platforms have will bring your business in front of potential buyers you would otherwise never encounter. When you can connect with buyers on different continents, the likelihood of connecting with strategic buyers who are looking to expand in a certain geographical area increases.
Resources: Online places to find qualified buyers for your business are Flippa, BizBuySell, Baton and EmpireFlippers, to name a few.
Strategy 4: Use Google Search Wisely
Why It's Important: Many small business owners won’t sell through a broker, as their annual revenues are too low. A lot of these owners go into the selling process on their own, looking for buyers by simply googling them.
From Experience: That is exactly what Jodie Cook did. She searched for PE firms in the UK who buy agencies and ended up selling her marketing agency to one of them. It’s entirely possible for entrepreneurs to take this route, just make sure you are getting proper legal advice along the way.
Important: When you go in alone, it’s key to get the right independent support, like an outsider view on the value of your business. You need to know what your small business is worth.
Strategy 5: Network at Industry Events and Conferences
Why It's Important: Industry events are great for networking and can help you meet interested buyers.
Tips: Go to these events with the goal of networking. Have a short pitch about your business's strengths and potential ready. Talk to speakers and attendees who might be interested in investing or acquisitions in your industry.
How a Cold Email Led to a Business Exit
Laura Roeder, the founder of MeetEdgar, a social media planning tool, decided to sell her business when growth started to plateau. She read books on business exits and identified potential buyers herself. She wrote a great cold email and sent it to these potential buyers.
This email was short and clear, and it caught the attention of the right buyer. She eventually sold her business for a price that was higher than she expected.
This story shows that if you prepare well and understand what makes your business attractive, you can find a buyer without needing any middlemen.
Your Challenge
Think about what makes your business special. Write these things down.
Identify what kinds of buyers you should approach, based on your goals and their goals.
Then, think about which of the above strategies above would work best based on your business.
Decide where to find the right buyers and approach them
If you take these steps seriously, you can increase your chances of finding a buyer who will respect your business and take it to the next level.
