The Pitfalls of Going it Alone When Trying to Sell Your Business
Many business owners approach Deal Leaders only after being unsuccessful in selling their businesses independently. The scenarios are all the same:
The businesses are trading extremely well.
They have been approached by acquirers and have also approached specific acquirers.
In some cases, an Information Memorandum had been prepared but was largely inaccurate and inadequate. In most instances, there was no structured presentation of the business.
Price and deal structure is always an issue that does not get resolved, with the main problem usually being the ability of the acquirers to come up with appropriate funding.
Our initial discussions with business owners in these situations follow a common theme. In all these cases, the business owners believed they’d followed the correct process and done everything possible towards achieving a sale and that the failure to secure a buyer was ‘proof’ that a deal could not be done.
However, what each case lacked was the following:
A comprehensive presentation of the business, its benefits to an acquirer, a clear presentation of differentiators, growth opportunities, etc.
A broad and thorough analysis of the buyer ecosystem, including international acquirers.
A structured engagement – knowing when to share what information, when to get the acquirer to sell themselves as good acquirers, when to ask for offers, and on what basis.
A workable strategy about price and structure. Far too much “take it or leave it” and not enough formal offers, which would lead to common ground and a platform for deal-making.
Let’s unpack this further:
1. A comprehensive presentation of the business
Our business evaluation and marketability assessment reports provide a comprehensive analysis of your business to ensure you can make a calculated decision on if and when to engage the market.
Upon completion, our clients have a thorough understanding of the value, risk, timing, and acquirer appetite for their businesses before approaching the market.
2. A broad and thorough analysis of the buyer ecosystem
Through our in-depth research and analysis of the market, we move past the apparent buyer market by compiling highly professional investor information packs and teasers. The teasers are an essential component of our process and success rate. They provide just enough information to stimulate interest to weed out potential buyers who are not a good fit. Through this process and our extensive local and international networks, we can attract a far wider audience than the obvious choices if a seller is trying to go at it alone.
Talk to us about our Market Approach Strategy – without fail this presentation delivers a complete mindset shift in our clients who start to understand why our process is so powerful!
3. A structured engagement
How one engages with potential acquirers can make or break a deal. Knowing when to share what information, when to ask for offers, and on what basis, is paramount. We engage with buyers to discuss at a high level the potential to take the deal forward. We arrange and oversee initial meetings and site visits with both local and international buyers and sellers. Our detailed process even goes down to the level of who should talk first in meetings, how to respond to difficult questions that an acquirer may ask, and when an acquirer should (or should not) make direct contact with a seller.
4. A workable strategy for price and structure
Once we have confirmed interest from a buyer, the negotiations begin, and common ground is identified, which is the foundation for deal-making. These negotiations take experience and know-how. The team at Deal Leaders has spent years earning their stripes in the trenches. We’re on the seller’s side and will do all we can to get the best deal possible for our clients.
What our Clients Have to Say
Don’t just take it from us. Here is what three of our clients had to say about their successful deals through Deal Leaders:
“We were thrilled about everything Deal Leaders. Their professionalism was outstanding and came through in how they operated, presented themselves, and which clients they looked at. They added great value, and all parties were happy with the end result.” - Steve van Rensburg
“Deal Leaders is very professional. Their research was amazing, and guidance through the process was really helpful. Their sign-up fee is worth every penny. I would recommend Deal Leaders to any business owner wanting to sell their business.” – Stephen Boere
“I don’t recommend people lightly, but I would recommend Deal Leaders because I was happy with the experience. At all times, it was a process of integrity. I never once felt that I wasn’t getting the attention and the deal I wanted.” – Sandy Jeffery
Contact us at connect@dealleadersint.com to find out how we can help you on your journey to selling your business.