How can you handle cold approaches from buyers?

After all the hard work you have put into your business, a cold approach from a potential buyer can be flattering.

But selling your business is not a simple process. You need to think carefully about what you want to achieve.

To handle this situation, consider the below tips:

Review your options

A surprise offer can take you off guard but don’t let it distract you from your goals.

If you were not previously considering selling your business, you need to figure out if it’s something you actually want to do.

Getting clarity at this stage is so important. There is a lot to think about, and selling your business is not a decision to be taken lightly.

If you decide that you are willing to sell your business, this doesn’t mean the initial buyer is right for you.

Think about what you want for the business. Would the buyer uphold this vision?

Or, could you get a better offer if you actively market the business?

Getting the best deal is not just about the money, you need to also think about your needs and wishes for the future.

Make sure the time is right

You might receive a great offer that takes you by surprise, but don’t feel pressured to sell if the time isn’t right.

Timing is everything when it comes to selling your business, as discussed in our previous blog.

You must keep your overall goal in mind, and not be swayed by an attractive offer that you will regret in the long run.

If you are interested in the offer but don’t feel ready to sell, be honest with the person that approached you.

Leaving the door open can save you from marketing the business when you are ready to sell.

Be open-minded

You have a set of priorities for your business and what you want for your business should not be forgotten.

Yet, having specific requirements for whom you want your buyer to be can come back to bite you.

If you have a very narrow pool of buyers and dismiss offers without consideration, your power to negotiate will be weakened.

You could also be left in a vulnerable position if a deal falls through.

Be prepared to answer queries

Whilst the buyer might take a keen interest in your business, they will still want proof that your business is worth their time and money.

Depending on how suddenly the offer arises, you might not have all the answers ready, so be prepared to do your research.

Put yourself in your buyer’s shoes and think about the following:

Whilst having the data ready is important, if you include useless information, the value of your reports will be diluted.

So, think carefully about which data is necessary and ensure your reports are clear and concise.

In our next blog, we will discuss how the structure of the sale will impact you.

Contacts us for advice on selling your business.

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