Stand out from the crowd when pursuing an acquisition

Here at the Business Sale Report we work closely with various parties involved in the acquisition process, from eager buyers hungry to secure great acquisition deals, to first time sellers anxious at the prospect of selling the business they have spent years building.

When assisting our buyers we always advise them that patience is a key quality required to ensure a successful outcome is achieved. Buying a business is not always a quick process - there are many hurdles that may present themselves during the course of the acquisition, so it is important to be armed with the right tools and knowledge to help avoid any setbacks and strengthen your appeal as a potential buyer.

As the UK economy slowly returns to growth following the recession, competition for attractive acquisition opportunities has never been more fierce. This means that when you do find the right opportunity it is imperative that you move quickly to secure it.

Business sellers will often be dealing with a large number of enquiries and may not have time to get back to everyone, so making sure you are at the front of the seller’s or their representatives’ shortlist is crucial for success. Distinguishing yourself from other buyers can sometimes just be a simple case of presenting yourself in a way that displays your intent on completing a deal and proving that you are not a timewaster.

Over the years we’ve spoken to thousands of business sellers about their dealings with buyers, and one thing they all look favourably on is having proof of funds for the acquisition. Buyers that provide proof of funds at the earliest stages of their enquiry are far more likely to receive a quick response from the seller. Ultimately a seller’s main goal is the sale of their business and so they will want to know from the outset that whoever they are dealing with has the funds available to make a sale possible. (Get in touch with us if you need any advice about different ways you can raise finance.)

Other things that sellers have told us they look for are any indications that somebody has purchased a business before as previous experience often increases the likelihood that they will be prepared to make another successful acquisition.

If you haven’t acquired a business in the past you need to show the seller that you are in an equally strong position to buy. Let them know if you already own a business, particularly if it is in the same sector as the target company. This will indicate that you are well placed to take on the company’s current operations, build upon existing services and/or utilise its workforce.

First time buyers who have not owned their own business before should not be discouraged, instead be sure to project a sense of confidence when communicating with the seller. Focus on your professional career, regardless of the field it was gained in. Be sure to explain your motivations for the acquisition and outline any and all experience you have that would make you a suitable candidate to be taken seriously. Industry experience is always a favourable quality as well as any previous successes you have had in your professional field.

Whatever the circumstances surrounding your acquisition search may be, make sure you do not miss out on any opportunities simply because you did not present yourself in a way that gets you taken seriously from the start. If you are having a problem getting the right kind of response from a business sellers then please get in touch with us, we are always available to help.

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