Boost Business Coaching

Can a business coach help you find the right buyer for your business?

Wellington Business Coach

A business coach will work with you strategically to look at the potential buyers when it comes to selling your business. There are roughly seven types of potential buyers for your business. This doesn’t include other succession strategies such as families or key people. It will help your sales process to understand the seven types of buyer that you can target or that you are likely to encounter.

Private individual

This is generally a person with good financial resources or access to finances. They are looking for a return on their investment and some flexibility in lifestyle choices. They also believe they can buy and at least maintain the current performance of the business or take it to a higher level.

Redundant or Soon to be redundant person

This purchaser is concerned that he may be made redundant or has been made redundant from a larger company. In some cases, they are getting older and have their nest-egg savings and have often thought to themselves that they could run a business. Franchise businesses are often preferential to these buyers. They like the idea of being in business for themselves but not by themselves. They are also used to working with systems and processes in their corporate life..

Current Worker in your business

An existing employee may be a potential buyer. An employer may have some good ideas on how ‘he could run the business’. The advantage to this of course is that the employee may know most of the operational ropes of running a business. The disadvantage to you the seller is that the buyer may not be in a financial position to outright purchase the enterprise. A way around this – if the business has a strong cash flow is that the seller may be able to take a deposit and leave some finance in the business. The banks will also look favorably at someone with experience.

ROI Buyer

The Return on Investment buyer is primarily concerned with the return. The Bottom Line. He will often run the business under management. The ROI buyer can gain access to large amounts of finance very quickly. The buyer’s consideration on type of industry, customers, operations, etc is secondary

ROI Strategic Buyer

This buyer is similar to the ROI buyer however he asks himself on day one ‘ What’s my Exit Strategy’ What actions do I need to take today to grow the capital value of this business. They may hold the business for a while or may make some changes and remarket the enterprise to one of the other businesses in this article

Competitor / Allied business

Usually a company that believes that purchasing your business and merging operations will provide them with a stronger business.

Grow by acquisition buyer

This company’s goal is to grow and gain market share. They purchase similar or competitors for purposeful growth. They are already experienced in the industry and think that this is a good way of becoming dominant in their market.

As a Wellington Business Coach I can say that we are often working with businesses who are looking to sell their business, EXITBoost is a great action orientated program we use to move assist sellers get maximum financial benefit for their business. We put in effective business strategies to ensure that we are targeting the right potential market