6. Marketing Approaches for Selling a Company
The marketing phase often determines the fate of the company sale. Those who try to sell the company themselves make the mistake of mentioning the sale to only a limited group of interested parties, for example by approaching only contacts from their immediate circle, typically business partners, bankers, tax advisors, and lawyers. However, these partners usually have no experience with selling a company. The result is only half-hearted attempts, because the sales process is not part of their core business. If a more or less chance contact with a potential buyer is established, subsequent discussions are usually terminated or interrupted, primarily due to an inadequately prepared offer. Over 70% of sales fail during the first negotiation.
The reasons for this failure are both factual and psychological. The psychological aspect relates to the fact that many sellers fear their company may be identified based on certain provided data, and therefore want to avoid broad outreach to potential buyers. This is a common and widespread mistake, as there are dozens of offers on the market. Furthermore, certain embarrassment sets in when the small group of contacted individuals has no interest in buying. Behind this lies the false assessment that one has a unique offer that the market should find irresistible. The reality, however, is that there is a fairly large volume of mergers and acquisitions. The target group must be reached and approached in large numbers, and it is entirely normal that most of those contacted do not respond to the offer. It works the same way as mass customer outreach -- only a fraction of those contacted will express interest.
It is therefore necessary to reach the right target group, and ideally in the best possible way, which is practically impossible in most cases. Today, we have excellent options for this. There are several internet portals where virtually anything can be advertised anonymously. In this context, it is important to select only the right platform. Right means that a specific target market will be reached where eager buyers are active. However, it is usually not very effective to thoughtlessly place an offer on various internet servers. Buyers are usually registered on all servers, and if they find the same offer everywhere, they view it rather negatively. This often leads them to conclude that the company is being offered under pressure and therefore cannot be attractive.
An actively managed market of offered companies through intermediaries -- those who actively accompany the seller throughout the entire process (i.e., not just sending emails or letters by post) -- have an undeniable advantage in marketing, provided they are active in the relevant market and have the ability to directly reach target groups as a whole. Because that is where serious interested parties (potential buyers) are, who do not want to bother browsing through various databases for everyone.
Before the actual offer is presented, personal conversations typically take place in which expectations, purchase motivations, and mutual suitability are discussed, so that a targeted offer can be presented to the potential interested party.
In addition, these companies have the invaluable advantage of creating direct contacts, where a precise definition of the potential target group is possible and candidates are personally approached. The success rate in these cases is higher than with all other types of outreach. The seller remains anonymous in this first step. Through a professional, consistent, and methodical approach, it is easier to find a suitable buyer.