Finding a buyer for your business is about preparation. At some point, you will want to sell your business or have to retire. No one keeps a business forever. When selling, it is important to streamline the process, receive top dollar, and experience as little stress as possible. In a recent Forbes article, “How to Find a Buyer for Your Business”, Alejandro Cremades explores the most important steps business owners should take when looking to sell.
Preparation
Finding a buyer for your business is all about preparation. Cremades notes, you should think about selling your business on the day you found your company. It is not a good idea to create a business, but have no exit strategy. It’s certainly not a safe strategy either. You should build and plan to be acquired.
For Cremades, it is vital to decide in the beginning if your exit strategy is to find someone to acquire your business. If so, then you should build your business accordingly from day one. It is essential to understand your market and know what prospective buyers are looking for.
Reasons Acquirers Buy Businesses
According to the Leadership Development Program, Kauffman Fellows, acquirers buy businesses for a range of reasons such as:
- Driving their own growth
- Accelerating time to market
- Consolidating the market
- Expanding their market
Other reasons acquirers buy a business include to reinvent their own business and even to respond to a disruption. There is no one reason why a given party decides to buy a business. However, there are some general factors that acquirers commonly seek out.
Connections
Cremades believes that it is critical to make connections for those serious about finding a buyer. He states, “Strategic acquisitions are about who you know, and who knows you. Start making those connections early.” Cremades points out that buyers are not always who one expect in the beginning of the process. It is important to stay open and always look to build solid relationships. Keep those relationships up to date regarding your status. Getting your company acquired is a process that can take years. Therefore, networking years in advance is a must.
If you have failed to network properly over the years, then a business broker is a valuable ally. EBIT Associates can make potentially invaluable introductions and help you navigate every stage of the acquisition process.