Thinking about selling your business? An important question to answer is: who should I sell my business to? There are several different types of buyer to choose from, each with their own set of pros and cons.
The risks of selling to the wrong buyer
1. Undervaluation
Ideally, selling a business is not a process to be rushed – and nor is choosing a buyer.
Being too eager to sell might lead to a business owner accepting an offer far lower than their business is worth. It’s advantageous to start the sales process knowing the true value of your business, and what you want to get out of the sale – whether that’s investment or a plan for your retirement.
2. Confidentiality breaches
Breaches of confidentiality can happen when sensitive business information is shared with potential buyers. This a particular risk when selling to trade buyers.
Trade buyers are businesses operating in the same industry as your company, who offer to purchase complementary businesses. Occasionally, potential trade buyers are simply fishing for information about your business, and have no intention of buying.
3. Emotional impact
Selling a business that you have spent years building can be a very emotional process. This is especially true if you’re selling a small business that has been in your family for generations.
Whether you intend to sell your business and retire, or want to stay involved and plan a gradual exit, the wrong buyer could make this difficult by not offering a flexible deal plan.
What the right buyer looks like
1. Successful buying history
Goonvean Group are a private investment group with a proven track record of acquiring businesses we believe will benefit from our investment – and turning this belief into reality. Our diverse range of businesses fall into four different segments: Manufactured, Engineered, Reprocessed, and Developed.
The segmentation of our operations has promoted connection and collaboration throughout the Group. Every company we acquire benefits from expertise sharing and the increased efficiency of resource division.
2. Ready to work with you – not against you
Selling your business is one of the biggest decisions you’ll ever make. Everyone has their own aspirations for how this part of their career should unfold.
At Goonvean Group, our flexible deal structures give you the option to leave after the sale, remain involved, or plan a gradual exit. If you need a business partner, not just a buyer, we can also help. When you become part of Goonvean Group, we join our expertise to yours, pooling our collective skills to help your business continue to thrive.
3. Values aligned and future-focused
When you sell your business, your decision will have a long term-impact on your employees and the future of your business. As a values-led investment group, Goonvean know the importance of preserving the individual culture and legacy of the companies we acquire. Many of our Group are family-run enterprises that have been in business for generations.
We invest for the long run – not just to sell a business for a profit several years down the line. It’s for this reason that we conduct searches and to find businesses we believe can truly benefit from our investment.
Choosing a buyer like us, who is invested in the future of your business, helps you hand the reins over with peace of mind.
