Mergers & Acquisitions...
Merfeld & Schine, Inc.
Selling Your Company, Step 7:
Finding Prospective Business Buyers
As with selling any product or service, you need to get the word out. In the case of selling your company, getting the word out is complicated by the need to protect confidentiality. We will not provide specific information about your company nor allow anyone to see your selling memorandum until they have signed our NDA form.
We can promote your business for sale without disclosing its name or identifying details. Serious buyers understand the need for confidentiality. We promote businesses for sale by stating the type of business, the general location, and an overview of our client companyís financial situation.
We like preparing a one page overview, often called a teaser. Once we have a signed NDA, and the prospect is screened for seriousness and financial capability, then we send the selling memorandum.
The way we approach prospective buyer on your behalf varies, depending the type of buyer we are dealing with (strategic buyer, PEG buyer, or individual buyer). Hereís an outline of how we approach various buyers and buyer categories:
We first compile a list from our own proprietary database of screened prospective buyers and from commercial sources. That is, we will buy a list of companies in your industry and limit it by company size, geography, and other factors. You will have the opportunity to review the list in advance and delete any company that you do not want us to contact on your behalf.
We will then contact the companies (who you approve of) via first class mail, directly to the CEO or owner. The letter will describe the business in general terms (size & industry) and invite the recipient to contact us if they might be interested in learning more.
Private Equity Buyers
By this time in the process, we will have reviewed our list of PEG buyers that are looking for add on acquisitions to find those groups that may have an interest in your company as an add-on to one of their existing platform companies. We will call those companies; in all likelihood we know these buyers and they know us on a first name basis.
Via email, we will also contact our full list of over 1,000 US and foreign private equity group buyers and describe the opportunity in general terms. As usual, we will not provide identifying details of your company.
Individual (and Small Group) Buyers
We maintain a database of prescreened individual buyers broken down by their acquisitions interests, financial capabilities, and our own rating of their likelihood to really buy a business. Those who may be a match for your business will be contacted.
If itís appropriate, we will also (discretely) advertise your business for sale using print media (trade and mass market publications) and online business selling websites. We will also discretely utilize our network of contacts of lawyers, accountants, and business advisors to find appropriate leads.
Next step: Screening Prospective Buyers
Back to Summary of the Selling Process page
We focus on (but do not entirely limit to) selling companies with sales in the $1MM to $20MM range located in the New England States: MA, CT, NH, RI, VT, ME.
If any of our M&A services fit your needs, please feel free to contact us for a free consultation without obligations or sales pressure. Fill out this simple form or call us (401-751-3320)
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