When business owners interview merger and acquisition companies to sell their business, they are often pitched, “We have lists of skilled buyers.” Well, there are lists and there are lists. This post can help you determine which firm to hire based on their list. If you’re a small business owner considering selling your business probably you will interview several business brokers or merger and acquisition advisors. Along the way you might hear, “We’ve lists of certified buyers.” Some potential business sellers find this phrase hypnotic almost. It congers up visions of the combined band of well funded, anxious buyers who can’t wait to pay a generous price the moment they are created alert to this great opportunity.
Let’s lift in the covers and appearance a little closer. If this is a business broker who grips main road type businesses like convenience stores, dried out cleaners, salons, and restaurants, he could be typically offering to an individual who is buying employment. If the broker is one that will not charge an up-front or a monthly engagement fee, he is agreeing to work for a success fee only.
To enhance their probability of getting some success fees these contingent charge brokers undertake dozens of clients. With a large number of clients, the broker can’t really afford to engage in the labor rigorous M&A process. Instead, he can only just list the business. Listing would include posting it on some “business for sale” web sites, placing an ad in the business opportunities section of the paper, and putting the word out to his network of professional contacts and lists of “qualified buyers”.
These lists are the result of capturing the contact information from individual purchasers that resulted from years of this passive list process. They have lists because these folks never buy almost. The business brokers do qualify these buyers by requiring them to complete a financial disclosure form and a confidentiality agreement. They make sure they involve some money, but they haven’t any way of qualifying whether they will actually part with that money.
- Bank Statement
- Formal classroom during work hours
- Mentor junior Developers and review their code
- 50% — 1 year 7 months
- Pay Per Click Advertising will allow one to target even the distant places
- There was also exemption from official sanction for industrial investment up to Rs. 10 million
Individual customers typically pay the lowest valuation multiples when they do buy a small business. For the bigger business owners that are interviewing M&A companies, this “qualified buyers” claim assumes a different meaning. These M&A companies have lists of hundreds of private equity companies with their buying requirements, business-size requirements, minimum EBITDA, and revenue levels and industry preferences.
All M&A companies have just about the same list. There are subscription databases available to anyone. The better M&A companies have enhanced these lists and inserted them into a good contact management system so they may be more easily searchable. The strategy these M&A firms with these Private Equity lists utilize is to blast a contact profile to their list and if they get an instantaneous and robust response, they will concentrate on the deal and work the deal.