Finding sellers and buyers
After a seller has made he necessary preparations to sell a business, a buyer must be sought. Similarly, a buyer will be seeking a seller that complies with the specific criteria set in the business plan.
The best source of information for both the buyer and the seller is a business opportunity intermediary.
- Business brokers (who mainly handle small businesses)
- Investment bankers (who handle larger corporations)
- Merger/ acquisition specialists (who help obtain outside financing for ‘in-between’ companies).
The work of the intermediary can include things like preparing a presentation package or a valuation report for prospective buyers. This can involve pricing the company, setting the financial terms and other conditions, professionally marketing the company, screening potential buyers and helping to evaluate or negotiate offers. Networking with solicitors and accountants can help the buyer be the first to approach the seller when a business goes on the market.
There are also other forms marketing sellers might consider on their own. For example, print advertising is a great way of a putting your business out there. The Sunday edition of a larger local paper is usually the best option. Larger businesses are often not advertised at all but are marketed by intermediaries. Trade sources can also be a viable source of information on businesses for sale. Almost every industry has a trade association or one or more publications.