How Do You Find Strategic Buyers?

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A really good way to find these strategic buyers is to go and ask some of the suppliers that you might have. Ask them when they go to non-competing businesses in different industries who their customers might be. You want to know who you could maybe check into. You’re looking for businesses that could have complementary services that you might be able to integrate into your own business. You can flip it around a little so you’re basically doing a little bit of spy work.

If you’re going to one of your suppliers, let’s take the cleaning business example, you might be purchasing some high-powered vacuum cleaners. Just ask them what other businesses do they work with that might be looking for your type of services. You will be surprised who they know. It really is having those confidential but general discussions. That’s one way of doing it.

The other way is just to sit down and brainstorm. Sure, you have friends that you can take into your confidence. Most people do. You might be able to sit down with your friend and simply brainstorm who is it that might be a complementary business that you could put on your list of potential buyers.

For example, if you sold it to a company that has a hundred thousand customers and you only have two thousand customers, they would make more money by taking your products and service and selling them to their larger customer base.

You’re trying to really package up an opportunity where someone else can make more money than what you can so they will pay you a better price. It could even be a larger competitor. Talk to your suppliers and see who they know.

And how about finding international players that are looking to get in? One way to do it is to put an ad on Craigslist. It’s as simple as that. You could do that without breaking confidences and just putting out an opportunity that you could describe if you’re looking for international buyers. You might find it.

If you get to an industry trade show and all the big players are there, you can obviously pick business cards up and network with them over there.

You could also be thinking about your own customers. They are another great source. Your buyer could be amongst your customer list, without a doubt.

And there are special visas for people that are wanting to immigrate to a country as well and they have to pay a certain amount of money for an actual business. Talking to immigration companies is also another way to go, because those companies actually assist people with that business migration. And they understand what the true motivation is too, because the buyer will have a different agenda than you, the seller.

They will have a completely different agenda, so you really have to get into their heads and think the way they’re thinking.

This is why it’s such a good idea to do an audit before you start talking to real buyers.



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