How To Craft A Successful Cold Email For A Business Exit
Most advice on selling a business often emphasizes the importance of having an M&A expert by your side. But what if you want to go at it alone? Laura Roeder, the founder of MeetEdgar, is one such entrepreneur who sold her business without the help of a broker. This article will explore how a well-structured cold email can be your golden ticket to a profitable business exit.
The Case Of Laura Roeder and MeetEdgar
Laura Roeder's business MeetEdgar, a social media planning tool, had a few million dollars in annual recurring revenue with a strong supporting team. However, growth stagnated after a few years, leading Laura to decide on selling her business.
To sell MeetEdgar, Laura decided against hiring an M&A expert and instead took a DIY approach. She researched, studied books on selling a business, identified the right buyers, and then crafted a strategic cold email, leading to a successful exit at a price above her minimum expectation.
The Cold Email Strategy
Laura's cold email success wasn't a fluke, but a result of careful planning and execution. Here's what we can learn from her approach:
Identifying the Right Buyers: The first step is to identify potential buyers who would be interested in your business. These could be competitors, complementary businesses, or even investors in your industry.
Crafting the Cold Email: The email must be well-composed, personal, and professional. The subject line should be attention-grabbing, and the email body should quickly get to the point - you're selling your business. Provide concise details about your business, why you're selling, and how it could benefit the buyer.
The Four Exit Habits for a Big Exit
Laura's success didn't just stem from a well-crafted email, but also from her adherence to four critical "Exit Habits."
Solid Team: Having a reliable team that can run the business without the owner is crucial. Laura had a capable team that managed the business even with her being in a different time zone.
Recurring Revenue and Profit Margins: A business with substantial recurring revenue and good profit margins is more attractive to buyers. It shows the business's ability to generate consistent income.
Company Branding: When Laura started MeetEdgar, she decided to build a company brand instead of a personal one. This approach made the business more appealing to buyers, as it showed the business could thrive without her.
Understanding Growth Potential: Realizing that your business has growth potential that you can't tap into with your current resources is a key Exit Habit. The perfect buyer is one who already has the necessary resources to drive this growth.
Conclusion
Although selling a business alone is not for everyone, it's possible with the right preparation, mindset, and, yes, a well-crafted cold email. If you're ready to develop your Exit Habits and prepare your business for a Big Exit, reach out to us.
