How to Find the Right Buyer for your Business
When it comes to selling your business, it seems like the person offering the highest price is the right buyer. However, there are other factors that should be considered. Finding the right buyer for your business means looking not only at offer price, but also at motives and potential problems.
Selling to a competitor can be a great option. The competitor already knows the business and how to market it. He will be familiar with potential clients and your own employees may be able to stay on and continue in their current roles. However, if the deal falls through, you’ve just handed the competitor quite a bit of confidential information about your business.
A financial buyer can be a good option and most likely won’t be a competitor. Unfortunately financial buyers are planning to sell your business again in a few years, for a profit. This means they’ll be unlikely to pay your asking price.
A strategic acquirer will be more likely to pay the price you’re asking, but you have to ask yourself what their motive is. It’s possible they’re buying the business just to close it or relocate it. That may mean that your employees will lose jobs or that the business will just no longer exist. This can be difficult for many business owners to accept.
Finally, consider an employee. Often a current employee is a great option for buying and taking over your business. Problems with this situation can occur though if the deal falls through and others at your business learn the business is for sale. Potential issues might arise too if there are many employees who don’t get along with the one buying the business.
Using a business broker like Franchise Sellers is a great option because we can help you wade through the many offers for your business. When it comes to finding the right buyer for your business a broker can take the emotion out of it and find the best option for you and your situation.
If you’re looking to sell your business, contact us today. Looking to buy or sell a franchise? Visit franchisesellers.com.