Selling to another trading entity can deliver the cleanest and most straight forward way to exit your business. It also presents an opportunity to drive a strategic premium. However, a trade sale has very specific dynamics that any seller should take the time to understand.
Acquisition from the buyer’s perspective carries significant risks. A trade buyer always has the option of growing organically or developing technology in-house, so what will motivate them to take the risk and acquire your business? Fully understanding your buyer audience and what is going to motivate them is essential in bringing about a successful trade sale. Further, who is willing to pay the desired strategic premium? We encourage all clients considering a sale to work with us on a formal exit planning exercise long before going to market to ensure they have time to fully understand these dynamics.
When selecting your buyer audience, as well and identifying the opportunity for a strategic premium, factors such as the type of acquirer you’d be happy to see taking on your business, ethical alignment and employee retention all need to be considered. This normally brings about a shortlist of potential buyers amongst which we create competitive tension to drive valuation.
When the time comes to approach potential buyers, running a professionally managed and appropriate process adds significant value. The correct preparation and marketing documentation will present your business in the best possible light. Our pre-sale due diligence is designed to flush out issues before your potential buyers have the opportunity..
Key to our value proposition is our access to key decision makers. We use our existing contacts and networks to ensure the opportunity to acquire your business is considered fully by those empowered to make decisions by their organisations.