Preparation of finding the right buyer
With a multitude of options in between, it’s our experience that there is a "sweet spot" on this spectrum for your unique deal, and making the right decisions upfront will greatly affect your final outcome.
Finding that sweet spot requires a careful and objective evaluation of your opportunity as well as its context and potential buyers.
Anticipating Interplay Between Priorities
First consider that while many influencing factors are at play, there are consistently three key seller priorities that affect the approach to targeting. As the seller, you are likely seeking maximum value, on a short timeline, with the transaction completed as confidential as possible.
With these three priorities in mind — value, speed, and confidentiality — you might intuitively conclude that a sale process should be very targeted, and approach a shorter list of potential buyers.
In fact, it may even be the case that you’ve already been approached by a potential buyer whos looking to buy your company. You may be considering exclusive talks with thissingle buyer, which at first glance could successfully achieve all three of your objectives.
While a targeted sale process with one or a handful of buyers may be the right answer in the end, the issue deserves thorough and deliberate consideration early on to ensure your best outcome. Therefore, our advice is to pause.
Our experience has shown us that, contrary to what you might believe, a targeted sale process will not necessarily give you the result you’re looking for — a faster, less disruptive and more confidential process. Furthermore, it may not lead to the maximum value for your company.
Similarly, many conclude that a sale process that contacts a large number of buyers may be the safest way to increase your chances of acompetitive process. But sometimes this broad canvass of buyers doesn’t make sense either. It could be detrimental to your other objectives by, for example, putting sensitive business information in the hands of competitors.
Ultimately, only a properly structured process will certainly achieve all three of your objectives. To properly structure your process, look far and wide, look outside the obvious
Come and speak to us to discuss your options.
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