The Different Marketing Methods Used by Business Brokers

The Different Marketing Methods Used by Business Brokers

Experienced business brokers offer significant advantages when it comes to marketing your company for sale. This guide discusses the various different marketing methods that are used by business brokers. Specifically, we discuss confidential marketing methods as they are the safest and most effective way to achieve a high sale price for full market value or higher. 

What Marketing Methods Do Business Brokers Use?

Every business broker may use their own strategy for finding buyers. However, there are some more commonly utilized marketing methods that your business broker should be using to help you sell your business. Below we discuss four different marketing methods and provide detailed explanations for each one. 

Leverage a Database of Connections and Contacts

Your broker may begin by leveraging their extensive database of connections and contacts they have compiled. This is especially the case if you choose an experienced broker who has worked as a business broker for more than  decade, has helped sell numerous businesses, and has a strong relationship and reputation with others. Notably, your broker may reach out to potential investors, other brokers, and other parties they feel may have an interest in viewing your sales memorandum and purchasing your company. 

This is often a great place to start for the business broker because they can trust the potential buyers who view your confidential information memorandum (CIM) will maintain confidentiality and are more likely to purchase. In many cases, this marketing method is all that is necessary, although it is still advisable to utilize the marketing methods below advantageously as well. 

Business Sale Websites

There are highly popular business sale websites that brokers often use to find potential buyers. Keep in mind, buyers often do not know where to look to acquire the right company, and they are often prone to stumbling upon a website to find a business. In this case, you want to meet qualified buyers where they are. For this reason, we recommend having a presence on business sale websites such as bizbuysell.com. Experienced brokers understand how to properly utilize these sites in a manner that protects the confidentiality of the sale. 

Contact Industry-Specific Parties That May Have Interest

At first, it can seem odd to contact your competitors when you list your company for sale. However, this is often a great way to sell your business for excellent value. No one understands your industry more than your competitors, and they are able to understand exactly why your asking price is fair and reasonable, which helps with the negotiation processes. Therefore, many business brokers confidentially contact parties within your own industry to determine if they are interested in purchasing your company.

 

Of course, it is essential to ensure confidentiality is maintained when contacting other business owners and investors within your own industry. It is also important to ensure your competitors do not use your proprietary information against you (or the future owner) if they view your CIM but do not purchase. A qualified business broker understands how to draft a non-disclosure agreement in a manner that ensures confidentiality is maintained when presenting your business to potential buyers within your industry. 

Print Campaigns 

We do not recommend the use of print campaigns when selling a business. It is less effective and more likely to lead to rumors that you are selling your company. However, some business brokers utilize this approach. In certain instances, it may be an effective and safe strategy. However, the potential to field qualified offers via print campaigns should be examined on a case-by-case basis as it is not an appropriate strategy for every seller. 

Confidential vs. Non-Confidential Marketing Methods: What is The Better Option?

It is strongly recommended to only utilize business brokers who maintain the confidentiality of the sale. Although a public sale may help you reach a number of buyers fast, it may greatly compromise your business operations. Employees may fear losing their job, in which case they seek other opportunities. Your suppliers and, most importantly, your customers may have similar fears of a change in ownership, which may lead them to stop buying from you and/or cancel or not renew existing contracts.

With confidential marketing methods, however, you can ensure that your sale remains private until you have reached a deal with a buyer you trust to continue to grow the company the right way. This protects your customers, employees, and suppliers and helps ensure the value of your business is not compromised due to disruptions in business operations or the loss of profits related to news of your sale going public.

What Other Services Can a Business Broker Provide?

The role of a business broker goes far beyond marketing your company. In fact, they often assist sellers (and buyers) Through the entire process. Specifically, the additional services a business broker can (and does) provide for their clients include:

  • Business valuation: Every sale begins with a market-based valuation. This lets you know the approximate amount your company is worth on the market. 
  • Exit strategy goal planning: Your broker should also help you plan your exit strategy, sale goals, and your long-term vision.
  • Finding a buyer: As discussed, business brokers work extensively through various marketing methods and channels to secure you the best deal possible.
  • Due diligence assistance: This is a critical time in the sale where the buyer reviews all details of the company. A business broker is needed to ensure it moves along quickly and both sides are satisfied by the time they move to close the sale. 
  • Closing and ownership transfer: Business brokers also help their clients through the closing process, answering their questions and ensuring the process goes smoothly and without setback. 

Sigma Mergers and Acquisitions Has Access to Hundreds of Potential Buyers

We have access to numerous potential buyers and leverage all of our resources to ensure you are able to sell your company for fair market value. To learn more about our valuation and marketing methods, contact us today. We are happy to answer your questions and provide you with a no-cost and no-obligation professional business valuation.

Sigma Mergers & Acquisitions is the leading Mergers and Acquisitions, Business broker advisory firm in Dallas Texas specializing in facilitating strategic transactions for businesses across diverse industries. Our seasoned team of experts meticulously navigates clients through the intricate process of Business brokerage, mergers, acquisitions, and divestitures, ensuring seamless transitions and maximizing value. With a client-centric approach, we offer tailored solutions designed to meet the unique needs and objectives of each organization. Our comprehensive suite of services encompasses every aspect of the transaction lifecycle, from initial valuation and market analysis to due diligence, negotiation, and post-merger integration. Through a combination of extensive industry experience, market insights, and unparalleled dedication, Sigma Mergers & Acquisitions delivers exceptional results that drive growth and prosperity for our clients. Whether you are considering selling your business, seeking strategic acquisitions, or exploring other growth opportunities, trust Sigma Mergers & Acquisitions to be your trusted partner every step of the way. Contact us today to discover how we can help you unlock the full potential of your business and achieve your strategic objectives.

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Scot Cockroft Business Broker
Hi, I’m Scot Cockroft.

When I founded Sigma Mergers and Acquisitions back in 2003, I had sold my business the year prior.

Now, that can sound good, but let me tell you, back in 2003, it was not easy to sell a business. Not that I’m saying in modern day times it’s easy to sell a business, but back then I interviewed broker after broker after broker, and no one was interested in actually seeing the value that my business brought to the table.

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Sigma is a the leading business broker in with Corporate offices in Dallas/Fort Worth with roots from 1984. Over 600 businesses sold in Dallas, Fort Worth, Texas, Oklahoma and across the South. Sigma provides full business brokerage services with NO upfront fees. We provide Market approach business valuations for business sales. Sigma is passionate about helping business owners achieve their goal of financial security. Contact us today for a free no obligation business valuation. We are here to help you achieve your goals.

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