How do I Find The Right Buyer for My Startup
It’s a formula that goes back for years, maybe as old as business itself. Start a business, make it successful, and sell it to another company for a lot of money. Repeat as necessary. The process as doubtless has been going on for more than a century, as businesses have become first nationally in scope, as during the 1800s, and in more recent decades global in reach.
Right Buyer Requires Considering several Factors :
Finding the right buyer for your company means more than seeing the buyer who will pay the most for your company. Indeed, that is a factor, but if you want your company to go on, even under different ownership, and for your (former) employees to continue to thrive under new ownership, then you need to consider how to find the right buyer. It’s not as hard as you might think.
Most entrepreneurs start a business with a vision of how they would like the company to be and what they would like the company to accomplish. Given that vision and those goals, a business owner who is ready to sell should keep those things in mind when selecting a buyer. This process should start with the founding and operation of the company so that when the time comes to sell, the company will be attractive to the “right” kind of buyer. The process should include steps such as:
- Pick the proper market. When starting your company, you should aim for a market where there are already competitors or room for other potential competitors to enter the market. Don’t pick a crowded market with competitors who dominate so much that you can’t hope to compete.
- Choose the right people. Pick top employees who share your vision and dedication to the success of the company.
- Execute your business plan.
- Keep meticulous books and financial records, as well as HR and other corporate records.
- Protect your intellectual property with the proper patent, trademark, and copyright filings.
steps to keep your business attractive
, you will be able to pick and choose from potential buyers and find the one that you believe will best carry on your vision for your company. This will help you find a buyer that will remain committed to your product and your former employees.
If You Are Selling Your Startup in the San Jose Area, You Should Consult with the Merger and Acquisition Attorneys of Startup Company Counsel to Make Sure You Do it Right
Finding the right buyer for your startup can be highly beneficial to the company that you sell and to your peace of mind. If you are selling a startup in the San Jose area, you should consult with the business attorneys of Startup Company Counsel at 408-441-7555 or through our online contact form.