1. Target Group Analysis for Outreach

Before we begin selling a company, it is necessary to understand what types of buyers exist, where to find them, and what their expectations are. The result of these considerations is a profile onto which an appropriate outreach strategy is mapped. For small and medium-sized enterprises (SMEs), the most important target groups are relevant strategic buyers, entrepreneurs, holding companies, and sometimes financial investors.

The last two target groups typically have high demands on the quality and quantity of submitted documents. Small and medium-sized businesses often have difficulty providing all required documents due to limited capacity. Qualified business valuations, investment budgets, business plans, or expert opinions, as well as other materials, are usually required. Moreover, these are primarily interested parties who have requirements for specific financial analysis results, such as a minimum EBITDA. Additionally, most investment companies are interested in acquiring a company from a specific industry, or based on the company's situation and the size of the stake being sold. There are ways to identify companies that publish their acquisition criteria on various platforms. Approaching investors is pointless if their criteria and requirements are not met. The result would simply be a polite rejection.

Strategic buyers are primarily competitors seeking to achieve synergy or complementary effects. For example, expanding into new markets or acquiring the know-how of the company being sold. With a slight exaggeration, the target group of interested parties can be simply defined by answering the question: what are the strengths of the company being sold and what added value can they create for the investor? It is advantageous to clearly define and articulate the potential benefit to the investor, tailored to the target group. Suitable candidates for outreach can be identified through databases and demand platforms. Alternatively, the business offer can be advertised through an anonymous listing. It is not uncommon for acquisition candidates to come directly from the industry of the company being sold.