Page 15 - SEll Your Business Booklet
P. 15

3





 STEP 3. Documentation  STEP 4. Identifying Buyers                                                                  Documentation

 What a buyer    Speaking to the



 needs to know  right audience




                                                                                                                    4



       More than 30% of businesses   and seek Expressions of Interest   What buyers look for
       listed with us are sold to pre-  (in strictest confidence).
       qualified buyers already registered                        •  History of positive earnings and cash flow
       on the LINK database, often   Rest assured, your sensitive   •  Stable staff and infrastructure              Identifying Buyers
       accelerating the sales process.   information is kept private at every   •  A strong brand(s) in a growing market
                                    step. LINK maintains stringent
       After preparing the IM, your LINK   protocols to control who receives   •  Established customer and supplier
       broker will identify and build a list   detailed information about your   relationships
       of potential buyers from the LINK   business. All buyers must sign a   •  Genuine reason for sale
       database. With your approval,    Confidentiality Agreement before   •  Acceptable ROI
       they may discreetly approach   any information is disclosed.
       some of these potential buyers                             •  Future sustainable earnings and strong
                                                                     growth potential
                                                                  •  Possible seller finance
                                                                  •  No surprises
                                                                  •  A business that can run successfully
                                                                     without you


       Guess who?
       Knowing what motivates different
       types of buyers is part of the way
       we find the ideal buyer for your
       business. Generally, buyers fall
       into one of the categories below:
                                              PRIVATE EQUITY FUNDS
                                               Investment groups wishing
                                                 to maximise returns in
                                                   growth industries
                              STRATEGIC                                     MANAGEMENT BUY-OUT
              Larger companies or corporations                              Management acting with private
             making an acquisition for strategic                            equity investors to acquire a company
        reasons, such as eliminating competition  ?                         they know intimately


                                 FAMILY                                     TRADE BUYERS
                              A business is                                 Competitors aiming for cost reductions
                    sometimes transferred or                                and improved operating efficiencies
                     sold to a family member                                by acquiring a larger customer base

                            JOB BUYERS                                      PRIVATE INVESTORS
                        People looking for a        What does               People who are considering investing
                    smaller business to run as     your ideal buyer         in a private enterprise with a less than
                           owner managers                                   full-time involvement
                                                     look like?



                                                                                     LINKBUSINESS.CO .NZ   13
   10   11   12   13   14   15   16   17   18   19   20