Not all companies are sold in the same way. Each sales transaction has its differences. Therefore, each strategy must be designed and structured according to your preferences as speed, confidentiality, price and market conditions.
Among the different possibilities, the majority of sales processes can be placed under three types.
1. One to one relationships: this consists of contacting a single buyer. The candidate who is contacted will be the one who is considered most likely for the transaction. In these cases, the process can be very confidential and, sometimes, faster. However, many candidates who might have been interesting or who might have paid more are left out.
2. Restricted auction: this consists of contacting a small number of potential buyers (between three and five). If your company is very attractive and has a clear interest from potential buyers or investors, a formal process can be organized. This organization means that the process can be faster and it creates competition between possible buyers. The risk is that the candidates we choose may not comply with our deadlines for submitting bids. They might even fail to make any offer because the company is not interesting enough to be able to impose a rigid auction process.
3. Broad auction: consists of contacting a large number of candidates (between fifteen and twenty for example). A formal process is created with deadlines for submitting bids. This is an advantage because it maximizes competition, creating a highly competitive environment that shows you the maximum price the market is willing to pay. One drawback is that the deadlines can be extended and there are more risks for a lack of confidentiality, with the potential disorder that rumors can cause.
You are able to choose one of the processes according to which elements are most important to you: confidentiality, the speed of the process, chances of success, selling price or cost of the sales process.
Which is the best option for your business?