Owners often convince themselves that one particular buyer is, without a shadow of a doubt, the best buyer for their company. The conviction is understandable. There are many reasons a buyer can look perfect on paper.
Why a buyer can look like the perfect fit
The owner's company expands the buyer's served end markets or product offerings.
It brings new technology, or extends the buyer's geographic footprint.
It provides a skill set that is difficult to build internally, or much-needed capacity.
The two cultures are similar.
Combined, the companies could cut redundant overhead and become more profitable together.
Any of these can make an owner set their heart on a particular buyer. As the owner tells themselves, "I must be right. I have never lost a negotiation with myself." And yet, for all that conviction, the so-called right buyer may simply not take the bait.
Why the best buyer may not be biting
They do not see the same fit, or are not seeking the characteristics your company offers.
They just closed an acquisition and are busy digesting it, so the timing is wrong.
They would like to pursue it but lack the financial resources right now, perhaps after a recent investment or partner buyout.
They are focused on organic growth, or their culture shies away from acquisitions, or a past deal soured them on more.
Their board has paused acquisitions for the time being.
They are simply not hungry or motivated to do a deal right now, even if they admit they should be interested.
Whatever the reason, the lesson is the same: owners must have a backup list of buyer candidates to be confident of a successful sale. Other categories might include a private equity group, a family office that buys private businesses, the management team, or a well-backed individual looking to own and operate a company. Sometimes the perfect buyer is one the owner never even considered, and it is only a matter of time until the stars align and that buyer appears.
Selling a business is complex, and it requires the owner to be honest with themselves about what they want from the sale. Once the goals are clear, they can build an exit strategy and rank prospective buyers, the ultimate candidate, then an A list, then a B list, by their potential to help the owner achieve those objectives.
In a lot of ways, finding the perfect buyer is like fishing. Sometimes the owner has to throw out a lot of lures before reeling in the best buyer. Be patient, stay ready for the right one to bite at the right time, and remember the old saying: it only takes one.
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