When you start your program to purchase your “ideal” company, you
quickly realize that your ultimate success will depend on two primary
skill sets: 1) Your ability to FIND viable companies that are for sale,
and 2) Your ability to effectively qualify the potential acquisition
investment once found.
This article is about only step one, how to creatively find viable companies and one’s that are able to be purchased.
Assuming you have clearly defined your business purchase criteria and
you have decided to pursue only companies that are “officially” for
sale, versus attempting to find and contact company owners who might be
willing to sell, you will need to explore as many ways as you can to
find companies for sale as possible.
As a business buyer you want to use the best means possible to position
yourself to get the first shot at your most promising acquisition
candidates and to do such in as cost effective means as possible.
Often the more “creative” you are to find deals, the quicker you’ll find
the “right” deal. The more diverse your means to locate viable
companies for sale the better your chances of finding a quality
acquisition candidate that few others are aware of.
When you are pursuing acquisition candidates you really never know where
your next deal will come from. It could be word-of-mouth, something
your read in a newspaper, a visit to a website or a lead from an
association meeting. Listed below are a variety of ways you can use to
find businesses to buy:
25 Ways to Find Businesses For Sale
* Investment Bankers: Regional, National, International
* Investment Banker websites: Listings of businesses for sale
* Business Brokers: Regional and National
* Business Brokerage websites: Listings of businesses for sale
* Venture Capital Firms: Good referral potential
* Mezzanine Lenders: Regional, National, Always aware of potential deals
* Newspapers: Listings in Local, Regional, National and Industry specific
* Magazines: Listings in Regional, National and Industry specific
* Newsletters: Listings in printed or “Ezines” on the internet – Industry specific
* Commercial Banks: Many of their clients are considering sale of their company
* Consultants: All varieties, many have extensive practices and many owner contacts
* Associations: All varieties, some are focused just on merger & acquisition activities
* Business Directories: All forms of printed and electronic, many industry specific
* M&A Service Providers: They know who is selling what often on a national basis
* Product Suppliers: Many product manufacturers/ distributors are in the know
* Trade Shows: Walk a trade show in an industry of interest, salesman love to talk!
* Accountants: Many have large practices with extensive business owner contacts
* Professors: Many provide consultative services to business owners or are board members
* Corporate Officers: Especially Corporate Development managers, seeking “spin-off’s”
* Bank Trust Departments: Sometimes viable businesses surface in trust situations
* M&A Legal Specialists: Many are in the “crosswinds” of constant deal opportunities
* Networking Meetings: Your local business newspaper publishes many of these
* Technology Licensors: Always aware of companies getting “out” of new technologies
* Directory of Board Members: Board members typically know other board members
* Business Associates: Current and previous business associates and service providers
These “25 Ways to Find Businesses for Sale” are only a few of the
creative means you can use to find acquisition candidates. Keep this
list and add your own methods once you start your business pursuit
program. With today’s endless capabilities of the internet, its
worldwide reach into various countries, industries and industry
participants, there are countless variations for most of the means
listed here.
As important about being proactive to locate companies to acquire you
need to be as diligent to broadcast and document your specific business
purchase interests and purchase criteria whenever and wherever possible.
Business owners; individuals, corporations with multi divisions, merger
and acquisition intermediaries, private equity firms need to know who
you are and what specific businesses you seek to purchase.
This notification effort can be manifested in printed or “electronic”
formats. The internet again is the most cost effective means to document
your exact business purchase criteria and interests. However, be aware
that there are few e commerce sites that specifically accommodate
proactive business buyer needs. Most business transaction websites focus
on listing businesses for sale, facilitating primarily business sellers
needs, not business buyers.
Take the time and effort to research and try all these different means
to locate companies to buy. Some will be more productive than others,
while some may be more accommodating to your specific business pursuit
requirements. You must do what you must to throw away as much hay as you
can to get to that needle in the stack!
