Usually, not all businesses that are for sale are advertised. This means for you to find one you have to work extra hard to unearth the diamonds in the rough,.
Very few people who are selling their businesses will actually advertise them. The hidden market has numerous businesses for sale-by-owner that are not available to the general public. These mid-sized businesses are usually quite profitable and fairly priced. Getting access to these markets can save you a lot of your valuable time.
Here are some 5 winning tactics that you can use to find a business for sale:
Scour the Web
Use the internet to search for businesses that are for sale in your area. In your search, you should specify the kind of business that you are trying to find. For example, if you are looking for businesses for sale in Miami, you may want to start with this query and then build from there.
Check the section in your area under “for sale” then click “business” to see what businesses are for sale in that specific location. However, you should always be wary of the ads you see on Craigslist, and make sure to do your due diligence after having a conversation with the owner.
Accountants and Attorneys
Cozy up to certified public accountants (CPAs) and lawyers and tell them that you’re on the prowl for a business to buy. They most likely have an idea of where to find one in your target market. This is because these people are among the first to know about a company that is experiencing some financial constraints or an owner who is looking to sell due to retirement or other issues.
“Off Market” Pocket Listings
The off-market is where you find businesses that are secretly for sale.
Not many people who are trying to find a business for sale in their local area are aware of the existence of pocket listings. This is an advantage because there is less competition. Usually, for you to know about these opportunities, you have to know someone who knows someone to tell you about it.
The main reason for the existence of pocket listings is the sellers needing secrecy or privacy. Pocket listings are very appealing to buyers who are trying to find exclusive opportunities. They provide an avenue for smooth and fast transactions.
The good thing about pocket listings is that in case you change your mind and decide to pull out of the deal, there will be no public record showing the attempted sale.
Get a broker to guide you
Brokers who sell businesses operate like those in the real estate industry. Business brokers will provide matchmaking services; where they bring together sellers and serious buyers.
How to Find a Good Business Broker
- Through referrals from a trusted source.
- Contact ibba.org (International Business Brokers Association). This organization has over 1,000 business brokers all over the world.
- Practice due diligence. Thoroughly examine the broker’s credentials, background, and experience. Check to see whether they have handled similar transactions before.
Qualities of a Good Business Broker
- Dedicated. A full-time business broker will add more value than a part-time broker. Find someone who is dedicated to their profession
- Values confidentiality. You do not want to arouse any suspicion with the staff or the suppliers. If the employees, customers or suppliers found out that the business is for sale before the transation, this could lead to some serious repercussions if you were to acquire it.
- No large upfront fee. Do not do dealings with a broker who asks for a large upfront fee to carry out a valuation on a business you are looking to buy.
Finding the right business is important in order for a successful transaction to take place. It’s crucial that when you are looking for a business to buy, you should meet the owners of the companies for sale and those that are about to be for sale before they are officially advertised.
Do not limit your shopping to where everyone else is looking. One way to access the best deals is to check out the unadvertised pocket listings. You can’t always for opportunities to come to you. Always act like a hunter, not like a trapper.