Selling a closely held small business or your interest in one is a challenge, requiring a different mind-set and skill set from operating the business. Identifying and approaching the most likely potential purchasers can be risky but also beneficial. Some potential business purchasers include:
- Other Owners. They have the greatest knowledge of and experience with the business and its value, and the incentive and ability to keep the business operating.
- Friends and Family. They often know about the business and its value, and may have an interest in acquiring it or an interest in it.
- Employees. They often have a sense for operating the business and its value, and an interest in ensuring continued operation.
- Competitors. They may wish to merge with or acquire your business to gain customers, expand their business and eliminate competition.
- Professionals and Consultants. They know your business and the industry, and may have an interest in acquiring it or know people who may.
- Bankers/Financial Consultants. Specialists in your industry or area may be interested or know or have access to interested parties.
- Suppliers. They may want to expand their business, preserve sales, and access your customers directly.
- Customers. They have an opportunity to expand their reach and control their supply.
- Brokers. Licensed or unlicensed with experience and knowledge of your industry and area can broaden the market for your business.
- Other Business Owners. As they already own a business, they may be interested in yours.
- Franchisors. Your business model may be attractive to a franchisor.
- Liquidators. The value of your business’ parts may be greater than its whole, and a controlled liquidation could avoid lingering liabilities.
Deciding to sell your business or your interest in it can be life-changing and should not be taken lightly. It needs to be well planned to maximize return and minimize negative consequences. If we can assist you in this matter, please contact us.