15 May Preparing For Buyers
Once the decision to sell has been made and your business is on the market, you should be prepared for a variety of possible business buyers. Corporations, budding entrepreneurs and other types of buyers that have become interested in buying established businesses have become quite diverse and complex. Prepare for the current market’s most active categories of business buyers:
The idea of a family member taking over is pleasing to many of the parties involved because they imagine continuity and family traditions upheld. This might mean years of planning and preparation, involving those family members who will decide on the “heir to the throne.” However, often the difficulty with family buyers lies in the conflicts that could develop. For instance, does the family member have the finances to purchase the business and can the one selling actually leave the business? Ultimately, the decision has to be made whether the benefits of passing the torch among family is worth the possible cons.
Another business owner who feels that your business would complement theirs and that might lower costs, bring in new customers or sees other advantages of combining the two are called synergistic buyers. These buyers may be willing to pay more than other types of buyers, because they can envision quick results of the purchase.
The Foreign Buyer
Who can resist the American dream? Many foreigners have difficulty obtaining jobs in their previous professions when they arrive in the U.S. to become citizens. Owning their own businesses helps rectify some of these obstacles and most arrive with ample funds to purchase a small to mid-sized company. For larger companies, some foreign companies may be looking for a chance to seize a piece of their American pie and will purchase a company they feel will fit with their current enterprises and can run successfully from abroad.
This buyer comes with a long list of criteria. They are seeking maximum profits, but they may be the best fit for a seller who would like to continue to run their company after it is sold and are just in need of financial backing. A financial buyer will offer a lower purchase price than others, but they often take into consideration seller’s requests that aren’t monetary like keeping certain employees and locations. It is all about money and profit. For a business to be of interest, the profits must be sufficient to support current management and return a quick return to the buyer. Beware, however, that large financial firms may be looking to buy your company simply to tear it apart, reorganize and re-sell in portions, and may not be as apt to compromise.
Most owners of smaller to middle sized businesses lean toward selling to individual buyers. Many of them are more mature and know the corporate marketplace. Owning a business is the American dream, and many of these buyers have saved up during their career and can well afford. They are looking for financial freedom, independence and are likely to appreciate finding a turn-key business they can nurture and continue to build, but not feel like they are starting from scratch. The key to approaching these buyers is finding out what they are specifically looking for.
Yes, even competitors can be prospective buyers for your business. Obviously, there is concern here that competitors might take advantage of the knowledge that your business is for sale and attempt to lure customers away. If the business is compatible, though, a competitor might see the value in buying your business as an expansion to their own. Your Strategic Business Brokers Group business broker can be tremendously helpful in dealing with a competitor. They will use confidentiality agreements and won’t reveal the name of your business until after qualifying the competitor and contacting you, the seller.
While you should be aware of who you may be dealing with, filtering out just the right buyers is best left to your broker, who has the experience and knowledge needed to decide on the best buying prospects. Strategic Business Brokers Group, the best business broker in the Phoenix Arizona area, will lead you in the right direction with paramount buyers.
What Sets Strategic Business Brokers Group Apart
Strategic Business Brokers Group delivers value and exceptionally personalized service to every client. They are proud of their heritage and long history of superiority, keeping promises and always advancing forward. They are confident in their services and strive to build on their reputation, always looking for new and better ways to serve their clients.
They strive to reform and improve the way businesses change hands. They remain an innovative leader in brokering services for business sellers and buyers in Phoenix, Arizona. From business brokerage to mergers and acquisitions, Strategic Business Brokers Group is the company to call. They dedicate the same care to finding a qualified buyer for other businesses as they would were they selling their own. They prepare professional valuations, determining fair market value and ensuring that businesses are priced appropriately, allowing for smoother and faster sales.
Offering complete portfolios that provide more information than what typically appears on a one-page MLS form, they include the type of detailed information that a registered, qualified buyer wants to know. They design a custom marketing plan to promote each business effectively to likely buyers in each specific industry. This might include targeted marketing, multiple website listings, global networking, direct mail, trade advertising or any other avenues that may be appropriate for a specific market.
Strategic Business Brokers Group has capitalized on strategies that deliver and are proven to be successful, making them the best to sell business in Phoenix Arizona. Constantly evolving and molding their business model to keep up with current trends and market conditions, the talent of the team at Strategic Business Brokers Group is the most essential element that enables them to deliver again and again, responding in good times and times of adversity to exceed client’s expectations. By committing themselves to their clients, developing talent and leadership, Strategic Business Brokers Group will stand strong and thrive through any difficult market conditions.