There are a number of potential suitors for every business, and I can help you find the right one based on the terms of the deal and the offering price. Much like selling your home, the “highest offer” isn’t always the “best offer.”
- Strategic Sale – This is typically going to get you the biggest payout and be the best option in most cases. A strategic sale is someone who is a bigger player in your industry that wants to grow into your market, or expand based on the business you’ve built. Another strategic sale may be someone who uses something specific that you make within their own companies products.
- Private Equity Sale – This is a sale to a Private Equity owned company that is looking to do a roll up. This is different then a recapitalization that’s discussed in services offered. This would be a company that is aggressively trying to grow via acquisition to add value and create a bigger “product” for them to sell at a later date. There are a number of considerations when looking at doing this.
- Direct / Personal Sale – Depending on the size and nature of your business there may be an individual who is looking for business ownership and they don’t want to do it from the ground up. They’re looking for a head start and have the capital to jump in with an existing business. If your business is one that can produce passive income with someone else managing the business this is typically one of the best and fastest options.