Preparing to Sell Part 4 Marketing

Prepare Your Marketing Package

There are two primary marketing materials that are used to describe your business to potential buyers. The first is a one-page document that offers highlights of the business without revealing its identity and is sometimes referred to as a “blind ad.” These "blind ads" are used to generate interest without creating any possible negative consequences with employees, suppliers, customers, or competitors.

 The second is a comprehensive selling prospectus or business profile to be sent to serious buyers who have signed a confidentiality agreement. It is important to include photos (a picture is worth 1,000 words) of major assets, buildings, products, etc. The business profile should provide a comprehensive overview of the business including structure of the business, opportunities for growth, competitive advantages, personnel summaries, requirements for licensing,  financial results, an equipment list, licensing requirements, reasons for selling, terms and conditions of the sale, seller financing, and potential buyer profiles.

Marketing Plan

After your marketing package is complete, you and your broker should set up a process to target and qualify buyer prospects.

Advertising on Websites- Fewer than 5% of the general population are prospective business buyers, so focus only on the established 'business for sale' advertising venues that this 5% is following. There are a number of websites that cater to these buyers. Don't expect your broker to run a massive ad campaign. It isn't required or effective. Ads should be tested carefully and slowly. They should be "blind ads" where the identity of the company is protected.

Targeted Campaigns- Often times the buyer may be a competitor, supplier, or customer. There are several ways to approach these potential buyers. A direct mail or email campaign targeting these business owners/leaders can be an effective method to "get the word out".  Again, be careful to use "blind ads" to protect  the identity of the company until a confidentiality agreement is in place.

For additional information contact Ron Schwab at 530.269.1143.