How to approach competitors with view to selling (part of) my business

[Volteface]

Hello all - new here, but hoping to pick your brains!
We have been trading for 25 years as a small family business (really small - these days 3 of us), we decided not employ more people after lockdowns/Covid etc as my partner and I were approaching pension age, and because we want to continue with the smaller and more manageable part of the business (own design homeware and upholstered furniture) - but we want to sell off the most lucrative part of our business, which is sales of our own-design ranges of painted furniture.
We can identify 2 or 3 businesses which may be interested in our unique ranges, in addition to their own, but we are unsure how to approach them - and wary of agents.
Any advice on how to approach this would be very welcome. Thank you in advance.

 

[KeithGreen]

Hello all - new here, but hoping to pick your brains!
We have been trading for 25 years as a small family business (really small - these days 3 of us), we decided not employ more people after lockdowns/Covid etc as my partner and I were approaching pension age, and because we want to continue with the smaller and more manageable part of the business (own design homeware and upholstered furniture) - but we want to sell off the most lucrative part of our business, which is sales of our own-design ranges of painted furniture.
We can identify 2 or 3 businesses which may be interested in our unique ranges, in addition to their own, but we are unsure how to approach them - and wary of agents.
Any advice on how to approach this would be very welcome. Thank you in advance.

A simple letter of introduction with a brief description of what's for sale, and an invitation to reply if interested. Give them a phone number and an email address so you're accessible.

You can follow up with a phone call in a few days.

You may want to provide an NDA for signature before you send any detailed financials or similar sensitive information.

If you'd rather not do this yourself, and wary of agents, then your accountant may do it for a fee. Although he/she may not be keen on a follow up call as they're not really into that kind of sales work.

 

[Volteface]

A simple letter of introduction with a brief description of what's for sale, and an invitation to reply if interested. Give them a phone number and an email address so you're accessible.

You can follow up with a phone call in a few days.

You may want to provide an NDA for signature before you send any detailed financials or similar sensitive information.

If you'd rather not do this yourself, and wary of agents, then your accountant may do it for a fee. Although he/she may not be keen on a follow up call as they're not really into that kind of sales work.

Thanks Keith - that's very helpful - we do have a good relationship with our accountants as they helped us with a (failed) offer to buy us out from Laura Ashley in March 2020. Thankfully really COVID came along, it was a gruelling experience.

 

[Byzantium]

I'm in a similar position and from my research there are few options.

Find a willing purchaser, either someone in your industry or someone who could vertically integrate what you do and gain value from it.

Put an advert in a trade magazine or similar. There must be one, however niche.

Carefully speak to those who supply you or who you trade with (not B2C obviously) .

Go public online, all the regular broker idiots or similar, trying to find one decent one amongst the spivs.

 

[conferenceca]

Thanks Keith - that's very helpful - we do have a good relationship with our accountants as they helped us with a (failed) offer to buy us out from Laura Ashley in March 2020. Thankfully really COVID came along, it was a gruelling experience.

Hello Volteface,
It's great to see your dedication to your family business over the past 25 years. Here are a few steps to consider for approaching potential buyers:

1. Introduction Letter: Draft a professional letter of introduction that briefly describes your unique product line for sale. Include your contact information for further communication.
2. Follow-Up: Plan a follow-up call a few days after sending the letter to gauge interest and address any immediate questions.
3. NDA: Prepare a Non-Disclosure Agreement (NDA) for interested parties to sign before sharing detailed financials or sensitive information.
4. Accountant Assistance: If direct outreach feels daunting, your accountant might assist with the initial contact and provide credibility, even though follow-up calls may not be their strength.
5. Explore Alternatives: Consider advertising in trade magazines, engaging with industry suppliers, or even exploring online platforms to widen your reach.

Best of luck with your business transition!

 

[Lisa Thomas]

Hello all - new here, but hoping to pick your brains!
We have been trading for 25 years as a small family business (really small - these days 3 of us), we decided not employ more people after lockdowns/Covid etc as my partner and I were approaching pension age, and because we want to continue with the smaller and more manageable part of the business (own design homeware and upholstered furniture) - but we want to sell off the most lucrative part of our business, which is sales of our own-design ranges of painted furniture.
We can identify 2 or 3 businesses which may be interested in our unique ranges, in addition to their own, but we are unsure how to approach them - and wary of agents.
Any advice on how to approach this would be very welcome. Thank you in advance.

I can put you in touch with an agent/broker who can negotiate for you. DM me if of interest.

 

[Volteface]

I'm in a similar position and from my research there are few options.

Find a willing purchaser, either someone in your industry or someone who could vertically integrate what you do and gain value from it.

Put an advert in a trade magazine or similar. There must be one, however niche.

Carefully speak to those who supply you or who you trade with (not B2C obviously) .

Go public online, all the regular broker idiots or similar, trying to find one decent one amongst the spivs.

Thanks for the advice Byzantium, good luck to you too

 

[Volteface]

Hello Volteface,
It's great to see your dedication to your family business over the past 25 years. Here are a few steps to consider for approaching potential buyers:

1. Introduction Letter: Draft a professional letter of introduction that briefly describes your unique product line for sale. Include your contact information for further communication.
2. Follow-Up: Plan a follow-up call a few days after sending the letter to gauge interest and address any immediate questions.
3. NDA: Prepare a Non-Disclosure Agreement (NDA) for interested parties to sign before sharing detailed financials or sensitive information.
4. Accountant Assistance: If direct outreach feels daunting, your accountant might assist with the initial contact and provide credibility, even though follow-up calls may not be their strength.
5. Explore Alternatives: Consider advertising in trade magazines, engaging with industry suppliers, or even exploring online platforms to widen your reach.

Best of luck with your business transition!

Thank you conferenceca, the suggestions we are getting are really helping us focus and hopefully move on with it. Have a good week.

 

[conferenceca]

Thank you conferenceca, the suggestions we are getting are really helping us focus and hopefully move on with it. Have a good week.

I'm glad my suggestions are helpful to you! It's wonderful to see the dedication you've put into your family business over the past 25 years. Wishing you the best of luck with the transition and hoping it goes smoothly. If you need any further assistance, feel free to reach out.

Have a great week!

 

[Will.Lu]

I'm in a similar position and from my research there are few options.

Find a willing purchaser, either someone in your industry or someone who could vertically integrate what you do and gain value from it.

Put an advert in a trade magazine or similar. There must be one, however niche.

Carefully speak to those who supply you or who you trade with (not B2C obviously) .

Go public online, all the regular broker idiots or similar, trying to find one decent one amongst the spivs.

May I ask what products do you serve? thx

 

[MikeJ]

I can put you in touch with an agent/broker who can negotiate for you. DM me if of interest.

We used an agent when selling, and they were worth their weight in gold. Just having a third party write a letter outlining your business without naming it is a really good way to introduce the idea to the prospective buyers. If you're going to a small number of named companies, you should be getting a lower price than usual from the agent as that's half their job done for them.

 

[conferenceca]

May I ask what products do you serve? thx

Hi Will.Lu,
We don't serve any products; we are actually a conference organizer. We arrange conferences on various topics.

Thanks for your interest!

 

[Will.Lu]

Hi Will.Lu,
We don't serve any products; we are actually a conference organizer. We arrange conferences on various topics.

Thanks for your interest!

thanks for your reply, I got it.