Different Buyers, Different Perspectives

As a typical business owner you probably have not thought much about who will take over when you make your exit. It may be tempting to simply target everyone with a pulse, but that would be a mistake. You should know that already because every business plan manual tells you to know who your customers are, what they want and then give them that. Selling your business is no different. So let us take a look at some different potential buyers and what they are looking for.

Employee Buyout

Management buyout, when a small group of key employees or mangers buy the business from the owners, is a very common scenario in the small business space. Some of their primary concerns may be job security or job stability. They want to keep their jobs and they should not change too much. The big change is that you will leave. Suddenly, all the things you used to do will fall on their shoulders. Reality is that they are not prepared for that. You need to think about how you can close that gap and convince them and any other stakeholders that you have done so; that everything is going to be fine.

Family Members

Selling to family members is still a common but shrinking scenario in the small business space. The major challenge is to keep the peace if there are multiple stakeholders. There may also be a preparedness gap to close, perhaps even reluctance to step up and take over. The goal will typically be to provide stable income for them and to preserve a legacy of hard work. Tax considerations are also high on the list when selling to family members. That is mostly your concern, though, not theirs. It is still important to keep focused on what their needs are.

Third-party Buyers

There are several kinds of third-party buyers with different goals and expectations. Some may want to continue your business as is because it fills a gap in their own product or service lineup. Others may simply acquire the assets and integrate it into their own. Some may consider it a long-term investment for passive income. Others may consider it a short-term venture to realize a quick gain. 

Conclusion

All of these different buyers will have different objectives. It is possible that you can find a buyer who is just dying to get a business just like yours the way it is, but that is unlikely. Chances are that there will be gaps between what you have and what they want. Therefore, the process begins with determining what you have. Then figure out who would be most likely to want something like that and, finally, make it irresistible by closing any gaps between the two.

Most of the steps to do that take time so knowing when you want to sell and to whom can make a big difference.

The Intelligent Exit: The Business Owner's Guide To A Winning Strategy For Selling Your Business

Selling your business is likely to be one of the largest transactions you will experience in your life. The stakes are high and a mistake cannot be undone. You only have one chance to get it right. Most other business owners totally ignore preparing for their exit, but you will be well prepared when the time comes.

You will know what you will be doing with your life and how you will live. You will have a salable business so you can unlock the value you have worked so hard to build.