Using online channels to sell your business

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18/10/2017

Selling your business can be tricky. There'll be a period of time when you want to screen interested buyers, but you're not ready for everyone else - employees, suppliers, customers - to know about your plans. And you definitely don't want to let competitors know your sale plans - unless you're considering a specific competitor as a likely buyer.

The internet can be an effective method of reaching potential buyers outside your network. Online marketplaces are the go-to resource for buyers and sellers, so it’s worth making sure you consider an online strategy when selling.

It’s especially important if you have a specialised business, operate in a small niche or have a business that doesn’t have a ready market of buyers.

Quiet marketing

One option is to start ‘putting the word out’ through third parties such as your accountant, lawyer or business association network. Small teaser adverts promoting the opportunity but not the details. Have these third parties screen applicants to ensure they are legitimate and not competitors spying.

Make use of business brokers

Brokers will have their own websites with sales listings, done in such a way as to conceal the identity of the businesses yet still offering information that potential buyers will find interesting and relevant.

Business brokers will also have access to information regarding potential buyers. They could be their own clients, or people they know through their networking contacts. They're able to connect the sellers and buyers in this way, without breaching confidentiality.

Find brokers that focus on your industry, or have a nation wide (or even international) footprint.

Online marketplaces

If you're not using a business broker, you can still list your business online yourself. UK Businesses For Sale is a great example of a place to start. Not only can you list your business, but they offer free selling guides to help make the process easier.

You can also make use of online forums. You'll network with other business owners who are also selling their business, and these contacts can be useful. UK Business Forums is a good example of a connected group of business owners.

Marketing your business online

Once you've decided which online marketplaces to use, it's time to craft the advertisement. Keep the following in mind:

• Make sure you give yourself enough time. It's important to not only be sure of your decision to sell, but to have all information relating to potential growth and revenue, past performance and business costs on hand. Putting the time and effort into preparing these figures in advance will tell potential buyers that you know what you're doing and give them more confidence in you.
• Determine a fair asking price. We've got a guide on how to accurately value your business before selling. Read through it and work out a market price range for your business. Online marketplaces often provide tools for determining a fair asking price, and they're worth making the most of. Always seek professional help when determining a price for your business.
• Provide as much information as possible without giving away the identity of your business. You'll need to say where the business is located, but don't give out the actual address.
• Create contact details that aren't related to the business. Don't use your business email address as the contact - set up a different one through Gmail or another free email provider. Likewise, use a different phone number, not your business one.
• Provide reasons why you're selling the business. Potential buyers are less sceptical if they know what's behind your decision to sell.

Once you list your business, you might find that certain questions come up repeatedly. This can serve as a guide for what you should add to your listing if on-going editing is possible.

Maintain communication

Once you've listed your business, make sure you check your email address and respond to any inquiries in a timely fashion. Arrange to talk to interested parties via telephone as soon as possible. There's nothing more frustrating for potential buyers than sellers who are difficult to communicate with.

Non-disclosure agreements (NDA’s)

It’s worth including an NDA online with the listing. What you're saying to interested parties is that this is the agreement they'll have to sign before you'll provide any further information. It's a good way to weed out the tyre-kickers.

Summary

Although it's still worth listing your business in traditional ways - business journals, industry newspapers, at networking events etc - getting the word out there online can be an effective method to widen the pool of potential buyers. Whether you go with a business broker or decide to list it yourself, make sure you get advice from your professional advisors.

Additional resources

• Where to sell a business online
• Buy or sell a business online