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BayState Business Brokers Blog

Get the Best Price for your Business by Selling the Business Without a Price

Posted by Marc Gudema on Thu, Jun 07, 2018 @ 02:58 PM

We are all familiar with the typical process to make a large item purchase.  Someone puts a price on it and we make an offer lower than the asking price.  Then, we negotiate to reach a deal, typically in the middle somewhere.  This is not the way the sale of large businesses is done if a merger and acquisition advisor is handling the sale.  They are usually marketed without a price.  Here’s why, how this sale is done, and if selling your business without an asking price is best.

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Tags: strategic value,, how to sell a business for the best price, selling a business to an industry buyer

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,

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