The secret to sell distribution business successfully lies in keeping the sale a secret. It is, however, good to note that doing this is never easy. There are so many moving parts. Working with an experienced distribution business broker will improve your chances of keeping the sale a secret. At So-Cal Business Brokers we have been selling distribution businesses for more than 20 years. We know how to keep your company secrets and how to get the best results. In our experience, there are two very important things you need to do to protect your secrets during the sale.
Advertise using teaser documents
When you are set to sell distribution business you will have to market it extensively. This is the key to finding the right buyer and getting competing bids. While doing this you have to use blind ads and teaser documents. Our team will help create a short description of your business while at the same time disguising your identity. The teaser document we help create will include the following:
- Basic description of your distribution business. What you distribute and to whom, etc.
- Customer profile. How many and how often they buy
- Basic financials. EBITDA, revenue, projected growth rates and financial history
- Overview of the market opportunity. Size of the market you serve and available opportunities for growth.
Teaser documents are not the only things we do to protect your company secrets. Our team may also recommend the use of online data rooms and we always require potential buyers to sign non-disclosure agreements. What is more is that we will release sensitive information in stages. This is done in exchange to something that the buyer does for us in return. Contact us today to find out more about our strategy in protecting your company secrets.
Teaser documents and non-disclosure documents are not enough to maintain confidentiality as you sell distribution business. That is why you need to conduct due diligence on every buyer that comes knocking. Some buyers will just not commit. They just want to look around while others are not sure on what they really want. Our job in the due diligence phase is to dig into the personal life of a buyer to determine if he is serious about your business and ready to purchase it. Some of the questions we will help you answer include:
- Does the buyer have a good history of making acquisitions?
- Does the buyer have a history of walking away from deals?
- Does the buyer have a history of making last-minute changes to its offer?
- Does the buyer have the finances to acquire your business?
- Do the buyer’s interests align with yours?
With over 20 years of experience selling businesses like yours, we are the best ream to sell your distribution business. Contact us today to take advantage of our free consultation. We are always happy to hear from you.