There is a ton of people out there that want to buy your company with other people’s money. The trick is making your business the right type that they are looking for, and the right business they can get funds for. These normally 30 somethings have a big backing and their job is to find companies and buy them. Even corporate people are bailing out of their daily grind and jumping on the company buying game. For your company to be in the right place at the right time you need to follow these tips to fit the bill.
Here is 7 things you need to know about Business Buyers.
- Most business buyers find out about your company from word to mouth. Keep your companies social marketing and PR in action so these guys can hear about you.
- They look at five businesses a month. Which such a little prospect if they come to you it’s a good thing. Just have your ducks in order and you can make a quick sale.
- Each business buyer has 10-15 investors in their pocket ready for action. Each investor will throw in between 15k to 40k, there is always exceptions to get more.
- The amount of sale is supposed to last 2 years but in some cases they will go up to 3 years.
- They are looking for solid growing companies that can show consistency on paper.
- The CEO will need to step down and still help with the transition.
- Business buyers try to always avoid customer based businesses and want little risk.
A normal case is when one or two searchers find a business, bring in their investors, and join the company. As a team with certain employees from before the sale, they all work together to make the business grow faster than ever before. After about a year the previous employees normally will be let go. If the business grows fast it’s common to write an even bigger check to the previous employees that where still around for the transition.
A quick note: Keep your paper work in order, that is the first step to these deals. They will need a profit loss and tax returns.
If you want to sell your company this is the best money you will normally get.