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BayState Business Brokers Blog

How to Get Paid More for Your Business By Selling to a Strategic Buyer

Posted by Marc Gudema on Thu, Jan 15, 2015 @ 04:14 PM

In my last blog, I explained what the strategic value of a business is.  The strategic value of a business is the extra value of a business – beyond its financial value – to a particular buyer.  The problem is knowing who those buyers are and getting them to pay you, the seller, for the strategic value.  A buyer recognizes that they are bringing the strategic value to your business so they don’t want to pay you for it unless they have to do so to buy the business.  We use the M&A Process to get you, the seller, paid for the strategic value of your business.  Here is how it works.

The first step in the process is developing a professional presentation for the buyer which will explain the features, benefits, and potential strategic value of your business to them.  When we contact the buyer, we want to be sure they recognize the financial and strategic value of your business so they are willing to pay for them.  You know your business very well, but the buyer does not.  Some of the best buyers, such as Private Equity Groups, may look at many potential businesses to buy.  They need to quickly be shown the benefits of your business so they take the time to look at it further.  In most sales, we will not set a price for the business.  We are dealing with buyers who will make their own determination of what the business is worth to them.  Setting a price will put a cap on potential offers.

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Tags: m&a, strategic value,

When you sell your business, what is its strategic value?

Posted by Marc Gudema on Tue, Nov 25, 2014 @ 02:01 PM

If you are thinking about selling your business, you may have heard that you can get more for it if you can sell it to a strategic buyer. That is probably right, but it raises some questions: What is the strategic value of your business? How do you get paid for the strategic value of your business? How do you find the best strategic buyers?

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Tags: sell a business, m&a, strategic value,

How Online Marketing Has Changed M&A

Posted by Marc Gudema on Wed, Dec 05, 2012 @ 03:26 PM

Before there was an Internet, an M&A consultant would market a business by identifying the potential buyers and contacting them directly about the business for sale.  The goal was to generate interest from several qualified buyers in order to have competition for the business and bid the price up.  The business was not advertised publicly because, it was believed, this would primarily attract financially unqualified individual buyers.  In addition, it would increase the risk that the identity of the business for sale would be discovered.  The use of the Internet, by individuals and businesses has made this marketing approach obsolete.

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Tags: m&a, businesses on sale, m&a consultant, advertise a business for sale

Should a business broker or an m&a advisor sell your business?

Posted by Marc Gudema on Wed, Apr 27, 2011 @ 10:09 AM

If you have a business that generates a significant six figure income and should sell for a few million dollars, you may question whether you should use a business broker or an m&a advisor to sell the business.  Here are some ways you can make the choice: Focus less on what the firm calls itself and more on what types, and sizes, of businesses they sell and how they go about doing so. Because m&a advisors and business brokers are not subject to rigorous licensing requirements, check references and look at training and experience. 

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Tags: business brokers, m&a, m&a advisor, how to sell a business

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