Who will buy your business?

Maybe you are bored, wish to retire, or over it and it’s just time to get out! There are many reasons people may choose to buy your business.

When looking to sell your business it pays to spend some time considering who is likely to buy your business – put yourself in their shoes and detail what they are likely to be looking for.

You may have considered selling your business to a suitable employee or family member, but finding a buyer with the necessary skills, interest and money isn’t always that straightforward. The “list my business for sale” option gives you a great range and a bigger pool of prospective business buyers.

There are many types of buyers – they could be after an investment, or taking charge of their own work life and lifestyle. They may have been made redundant or find themselves out of a job in middle age, or perhaps they are new immigrants looking for a great opportunity.

All have their own reasons for wanting to purchase a business, and many have already identified the type of business they want to purchase and the price they are willing to pay. If you are looking to sell, it can be good to list the type of buyers your business is most likely to appeal to, what they will be looking for and how much they are likely willing to spend to secure your business. You are looking to match your business with its most likely buyers – these are the buyers that will most recognise the value of your business.

Ensure your business is “sale ready” and pitched in terms of their interests, pushing cashflow, good systems, and a business with a future. These are the things business buyers are mostly looking for. They also want to know that your business can be easily transferred into their hands.

Richard O’Brien, director of Business for Sale NZ website, NZbizbuysell, points out that selling a business takes time, energy and know-how. As he says, “Thousands of businesses change hands every year, with varying levels of success. To get the sale you want, it pays to understand the business sales process, to know who your likely buyer will be, and to have your business well prepared for sale.”

The best way to target the prospective buyer and maximise your prospects of a sale is to ensure your marketing plan has the right mix to reach the right buyers, ensuring the best value for your marketing dollar. This might entail engaging professionals like accountants and business brokers, making it easier for you to continue running your business throughout the marketing and sale process. Taking these steps, and understanding the sales process will put you on the road to selling and negotiating a price and terms that best suit you.

Businesses can take some time to sell – influencing factors include price, the type of business, ease of finance and current market conditions. The process needs to be managed efficiently exposing your business opportunity widely through key internet sites, direct contact and online networks.