When you think about selling your business, “art” is probably the last thing you think of. Of course, there’s always the “science” side of sales such as spreadsheets, financial statements and the size of your customer base. However, to sell to a strategic buyer, you need to get them excited about the possibilities and take them on the emotional journey from profit to passion — so they can discover the Rembrandt in your attic, so to speak. This ability to get a buyer excited is what makes selling to strategics an art form. Here are the key things you can do to master the art of selling to strategics.
Synergy and strength
A strategic buyer is someone who not only values your business as much as you do but will fall in love with it too. They can see how buying your company would complement what they already have, how it could open new supply paths, introduce their product to a new market or bring your technology to their global audience. It’s all about synergy and how acquiring your business makes their existing organization stronger. They are not interested in buying your business just because it looks good on paper—they are interested in its potential. You need to make the buyer fall in love with your business because they see the strategic fit. This is where the art comes in.
You can make the buyer fall in love by stirring their emotions and creating a connection. Just like when you’re dating, you need to show off your good side. To do this, you need to showcase your brand, your company culture, and the people who make it all happen. In other words, the heart and soul of your business. Your reputation, how you communicate with customers, and your values all come into play here to create positive feelings for strategic buyers.
Multiples of expected value
A strategic buyer will not understand the value your business offers unless you can show how your business fits into their overall plan. And when you do, this integrated value is what will get them to pay much more for your business than a regular financial buyer would. Multiples of expected value, in fact. It’s the art side of selling your business that stirs the emotions and lets the buyer see the real value, not the spreadsheets.
Our Selling to Strategics process
STS has a unique, proven process for selling to strategics that quickly identifies the strategic drivers to get buyers excited about your business and maximize value. We then reach out to our extensive global network to generate interest in your business — often from multiple potential buyers — and navigate the sales process on your behalf with complete confidentiality to protect your best interests.
If you are interested in learning more about our unique Selling to Strategics process, contact us today.