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Six steps to finding the right buyer for your business

Finding the right buyer for your business is one of the biggest challenges when selling up. Here, Chris Hird, corporate finance partner at Haines Watts, looks at the measures you can take to secure an external buyer that is right for your business.

How well do you know your sector?

Buyers often look within their own sector when beginning a search, so being able to spotlight your expertise and USP will help you stand out.
Knowing the key players, and whether they are looking to acquire, can also provide a huge advantage.
The acquisitions and disposals market is very much about who you know.
So, now could be the right time to start building your network and creating relationships.

Shortlist your target buyers

Remember to be strategic.
It’s not just about achieving the biggest offer, it’s about the legacy, the future of the business and the people who work there.
It has to be the right fit for you, as well as the buyer.
If you’re struggling to compile a shortlist, consult a professional advisor.
They will help you target buyers, using specialist databases comprised of financial intel.
They won’t make any contact with the target until you have approved of them.

How will you approach a buyer?

Whether it’s over telephone, email, LinkedIn or networking, use as many communication channels as possible to reach out to potential buyers.
Having a one-page business summary also really helps, as it can do the talking for you.
It’s also a useful touchpoint to leave with the prospective buyer once an initial conversation has drawn to a close.
The name and details of the business won’t be released until a confidentiality agreement is signed.

Consider your offer

Try not to jump at the first offer you receive.
Multiple offers can create a level of competition between buyers, which can raise the price
they are willing to pay, so try and speak to as many prospective buyers as possible.

Keep focus on your business

Finding the right buyer is a tying process.
Make sure you’re continuing to build your business throughout.
If you have a growth plan, don’t neglect any of its tactics and make sure you complete any outstanding actions.
Having an agile, efficient and tidy organisation at the ready will make it easier to market once word has spread.

This was posted in Bdaily's Members' News section by Bdaily Publishing .