4 Places To Find Qualified Buyers For Your Business

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Curious about how to find potential buyers for your business? Or perhaps wondering where you can find business buyers? 

Fortunately for entrepreneurs seeking to sell their business, the current market conditions heavily favor business acquisitions. Recent industry reports suggest that for every single business listed for sale, there are about 15 prospective buyers on the market. They range from individuals to strategic buyers, to private equity groups.

As it turns out, however, the growing number of potential buyers doesn’t necessarily mean that the sale of your business is going to be easy. 90% of interested parties who actively search for listed businesses don’t follow through on the sale process. Consequently, only 20% of the listed businesses end up selling successfully. 

These 20% of businesses are the few businesses that manage, among other things, to connect with qualified buyers. Instead of waiting around for potential buyers to discover them, the business owners take the initiative to link up with the right buyers.

You too can borrow a page from their book by leveraging the same methods they use to find the best buyers. An easy way to do it is to work with our Transaction Advisors at Beacon. We’ll hand-hold you through your sale process, and you can get started with a complimentary valuation. If you want to take a more manual approach, here are four options that are also viable paths to sell your main street small business:

How Do I Find a Buyer for My Business? Here Are 4 Options With High Profitability

#1. Online Business Listing Marketplaces


Find Business Buyers In Online Marketplaces. Source: Pixabay

On the web, you’re bound to find several platforms that act as digital marketplaces for buying and selling businesses. These websites are exceedingly popular with business buyers, as they regularly publish listings of profitable businesses for sale - across a wide range of industry categories, locations, and EBITDA levels. 

The whole system operates more or less like any other digital marketplace or real estate property site. That means that sellers get to advertise their businesses to hordes of potential buyers, hoping to ultimately convert any interested parties. 

In return, you can expect the online business listing sites to earn a commission from the sale of your business. This fee rate usually depends on your business valuation, asking price, and the size of the business. 

It’s worth noting, however, that while such listing sites offer a wide market reach, you’ll be facing very stiff competition from other sellers. 

Pros and Cons of Online Business Marketplaces


#2. Business Brokers


Business Brokers. Source: Pixabay

Business brokers offer a more specialized system of connecting business owners with the right buyers. What’s more, they closely administrate the sale process to secure the best terms and prices for the parties involved. 

For the best possible outcome, you might want to work with a seasoned business broker who has already built a vast network of market connections. They should have a rich database of prospective buyers who’d be interested in acquiring your business. 

Pros and Cons of Business Brokers


#3. M&A Advisors


M&A Advisors. Source: Pixabay

Closely related to brokers are M&A advisors, who also happen to act as intermediaries. The principal difference between the two is, brokers deal with standard business sale transactions while M&A advisors provide guidance during mergers and acquisitions. 

The latter is slightly more complicated than the former, as the buyers are ordinarily enterprises seeking to take over your business and then integrate it into their operations. That means you’ll be selling your business to a large corporation, government organization, or possibly a firm that manages multiple subsidiaries and partnerships.

That said, it’s worth noting that the costs involved are considerably higher than in conventional transactions. Your M&A advisor can, for example, help you sell a profitable business for tens of millions of dollars or even more. 

Such prices are no problem for U.S. corporations, as non-financial entities alone are currently holding on to cash reserves worth $4 trillion - which is largely meant for investments and business expansion projects like mergers and acquisitions. 

The role of M&A advisors here is to grant you access to this exclusive group of business buyers, as well as facilitate the subsequent sale process. They can market your business to their networks of strategic buyers, help you identify the most qualified buyers, and then negotiate the sale of the business on your behalf. 

Pros and Cons of M&A Advisors


#4. Investment Bankers


Investment Bankers. Source: Pixabay

An investment banker is another solid option to consider if you’re wondering how to find a buyer for your business. 

This is a professional who is essentially tasked with raising capital for organizations, governments, corporations, agencies, and other entities. As such, they enjoy very close relationships with both strategic and financial buyers. 

You could, for instance, use an investment banker to reach out to a private equity group, or maybe an expanding franchise. Whatever type of corporate buyers you have in mind, your investment banker will guide you through the whole process of finding potential buyers, contacting interested parties, identifying qualified buyers, and engaging them throughout the sale process. 

Investment bankers are also known to provide business valuation services as a means of safeguarding the value of your business. Then during the sales process, they proceed to negotiate the transaction agreement - as the final measure to protect your interests when closing the deal. 

Pros of Cons of Investment Bankers


(Bonus) #5. Hybrid Model: Use Beacon

Beacon is a tech-enabled business broker. We give you the best of both worlds: the relationships and hand-holding of a business broker, and the tech-savviness of working the appropriate online advertising, listings websites, and communities to find you qualified buyers.

We typically begin the sales process with a comprehensive, complimentary business valuation, through which we review over 150 different data points - cash flow, profitability, EBITDA, etc. 

Your potential buyers, on the other hand, are adequately pre-screened to confirm their entrepreneurship skills and resources. This ensures that the party you transact with has what it takes to not only purchase the business, but also run it effectively over the long haul. 

Once everything checks out, we proceed to the third and final stage - where we help business owners sail through the due diligence stage and, ultimately, close the sale deal. Beacon will even see to it that a confidentiality agreement is signed, after which you can proceed with your business exit plan. 

Over To You

As a business seller, you might want to keep in mind that this is just the first step in the long business sale process. Once you manage to find business buyers, you still have to worry about the intricacies of calculating the value of your business, screening qualified buyers, formulating an exit plan, negotiating the sale terms, and doing post-sale follow-ups. 

These are not the type of tasks that you can comfortably juggle. Many have tried it, and an overwhelming majority of them have failed miserably. Even if you somehow manage to start off on a good rapport with prospective buyers, there’s more than a 50% chance that the deal might eventually fall apart during the due diligence stage. 

To avoid the risks, consider taking advantage of our specialized business brokerage services. Beacon won’t just find you people looking to buy businesses - we’ll even prequalify your prospective buyers and manage the entire sale process, leaving you to focus on your core business operations. 

Get started today with a complimentary valuation.

Explore your options

Get a 100% confidential and complimentary business valuation.

Davis Porter
Davis Porter
Content Writer

Davis Porter is an extensively published business author who, for over a decade now, has deeply specialized in B2B commerce, finance, digital marketing, and business tech. While he was always intrigued by the intricacies of entrepreneurship, it is his Business Management degree that ultimately sparked his burning fascination for examining and resolving incessant challenges in business/finance.

Information posted on this page is not intended to be, and should not be construed as tax, legal, investment or accounting advice. You should consult your own tax, legal, investment and accounting advisors before engaging in any transaction.