We have a number of businesses for sale here in CT and NY, and as business brokers and M&A Intermediaries we always design a a custom marketing approach to each business. Because each business has a unique value, and that value is different to almost every buyer, each business must be marketed and sold with a customized marketing plan.
With that said, there are still fundamental marketing approaches that we implement with every business for sale that we represent. (I am excluding preparing the business, or marketing materials, and just focusing on marketing venues due to the length of this article) I believe that any successful marketing initiative for a business for sale in the middle or lower market, whether by a business broker or an M&A intermediary, must include these tasks.
General Mailing: This is a “shotgun” approach that is effective when used in combination with the other initiatives. There are businesses within general industry groups that would find your business a valuable add-on to their existing companies. These are not always competitors, or people directly in your field. These could be businesses that could greatly enhance their revenue with your customers, or greatly reduce their expenses with your suppliers. They may be able to exploit some intellectual capital that you have. The important thing is to take the time to think through the business types that could find value by purchasing your businesss. Once you have identified this group, you will use your teaser and mail it out to them, using either US Mail or email. Lists are readily available from D&B, infousa, and goleads among other sources. You will also want to find lists from industry trade groups or industry publications.
Lists of known buyers, investors, and Private Equity Groups: Every M&A intermediary or businesss broker maintains a list of business buyers, investors, or Private Equity Groups that have inquired with them about other businesses. These can be some of the most qualified buyers for your business. The approach to this group must differ slightly to the “shotgun” approach described earlier. Many of these investors have very particular criteria, and your M&A advisor or business broker will know what those are. The mailings must be somewhat customized to this group, highlighting the criteria they are looking for in a business or investment.
Bulletin Boards/Internet Sites: These are one of the most popular methods that a business buyer will use to seek out a business for sale. There are many of them, and I do not believe any one of them has a tremendous advantage in the marketplace today. Some are better with businesses that are larger, and others are better for “Main Street’ types of businesses.
Strategic Buyers: We discussed earlier the importance of this buyer type due to their willingness to pay the maximum value for their business for sale. Because of that importance, your business broker or M&A Intermediary will need to have a one-on-one approach to this group. You should identify 5-15 companies that are either competitors, or work in your industry, and would have a great deal of synergy with your company.
By marketing to these groups, you will be certain at the end of the process that you have approached a wide range of possible buyers, and found the buyers that are willing to provide you the most value for your business. That assurance will go a long way toward minimize any regrets you have with the process.
Princeton Capital Strategies
Providing Value Beyond a Typical Business Broker
(888)613-4995
Mergers & Acquisitions (M & A)is a unique business opportunity to sell their business, but because most business owners only sell a business once in their careers, they learn too late how to work with business brokers, business valuation firms, and investment banks. Princeton Capital is an M&A intermediary in the CT NY area that provides value beyond that of a typical business broker. Princeton Capital can bring more qualified buyers to a business owner in less time, because our methods come from world-class investment banks instead of typical business brokers. 
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