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A Key Element of a Successful Business Sale – The Limited Auction

By Generational Equity

Key Element of a Successful Business Sale

One of the crucial ideas that we communicate to business owners in our Growth and Exit Strategies Conferences is the limited auction process. Although the concept is relatively straightforward, the practice of creating a limited auction is not.

Intuitively, as with the sale of any asset (a car, a house, etc.) the idea of having as many buyers bidding on your business as possible, makes basic sense. Obviously if buyers are aware that you may have other very interested parties involved, it will potentially sweeten all the offers (and not just the ultimate sales price but also the deal structure, how much cash you get at closing, earnout terms, etc.).

The artful execution of this approach is one of the factors in Generational’s success over the years. The buyers we deal with know that this one of the primary foundations of our business model.  Our deal teams are adept at creating great buyer lists from our vast global network with the goal of getting multiple interested parties at the table to drive great deals for our clients.

And even if factors make it difficult to create a full limited auction, which does occasionally happen, our buyer network’s understanding of our model often contributes to us getting better deals for our clients.

Keep in mind that juggling multiple interested parties is more art than science at times. Our M&A professionals are good at it, as evidenced by the annual M&A rankings. Our deal teams collectively have hundreds of years of experience/practice in creating a limited auction. As the legendary coach Vince Lombardi once said, “Practice does not make perfect. Only perfect practice makes perfect.” And we work hard at perfecting our practice of finding optimal buyers.

By continually honing our skills and focusing on creating as many limited auctions as possible, we have seen great success. Our deal teams work hard to cast a wide net and find the optimal buyers for our clients.  The results of their relentless efforts are very gratifying and you will find them in the links below:

But enough about us. We know that not every business owner we meet with is a good match for our services. Because of that, at our educational conferences, we provide tremendously detailed information on all key facets of a successful business sale, including how you can work on creating a limited auction for your business. Over 100K business owners have attended our highly educational Growth and Exit Conferences, taking away with them knowledge that they will use in their exit planning journeys. By attending one, you can too.

To find one in your area, please use this link. And don’t worry, these are fully complimentary and require no future commitment on your part. We hold them because we are passionate and driven to help business owners create the legacy they deserve and exit on their own terms. To learn even more about us, please use the following links:

Carl Doerksen is the Director of Corporate Development at Generational Equity.

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