How Many Buyers Should You Approach When Selling a Business?

hosted by: David Mariano, Director and head

of the firm’s Buy-Side advisory practice

How Many Buyers Should You Approach When Selling a Business?

Every seller knows, all you need is one buyer to be interested in your business. But how many should you approach during your process in order to find that one? The answer may surprise you.

This week, Mark Filippell, author of the book, Mergers and Acquisitions Playbook, returns to discuss the differences between a targeted approach and a broad approach in the sale of your business.

Key questions in this episode:

* How do you handle sensitive information if your interested party is a direct competitor?

* What are some of the strategies to employ when deciding to approach a single buyer or multiple buyers?

* How much of a time commitment is required to approach a long list of buyers?

* How does the preparation of materials vary between the different processes?

* Is it always faster to deal with one prospective buyer as opposed to many?

Key points in this episode:

* How your approach can make all the difference.

* Why a confidentiality agreement is important and how a customized agreement can save you.

* Why the best course is usually a targeted auction.

* Mark’s secret about investment bankers (at 08:27).

* How your preparation can change when you target one buyer versus many.

* When to let the buyer chase you (at 11:36).

* What to do when your best buyer doesn’t work out.

Resources mentioned in this podcast

* Click here for access to training and templates

* Mergers and Acquisitions Playbook, by Mark Filippell

Listen to Fully Invested below: