Online Test Banks
Score higher
See Online Test Banks
eLearning
Learning anything is easy
Browse Online Courses
Mobile Apps
Learning on the go
Explore Mobile Apps
Dummies Store
Shop for books and more
Start Shopping

How to Contact Potential Sellers for an M&A Deal

Contacting Sellers for an M&A deal is easy. You pick up the phone and call. What’s tricky is having a meaningful conversation with a Seller.

When contacting a Seller, you want to speak with the owner, not an executive (even if it’s the president). A high-ranking executive is only an influencer. You need to speak with the actual owner.

Sellers don’t know they’re Sellers. Sellers often don’t even want to sell; you call them “Sellers” simply because you hope they’ll take that role. What they currently are are business owners deluged by calls, e-mails, and letters offering to buy their companies. These communications all say the same thing:

We have money, we have industry experience, we’re different, and we want to buy your company.

The sad fact is that most would-be Buyers don’t realize they say the same thing.

As Buyer, you have to understand that you’re a commodity to Seller. And the more profitable the Seller, the more that statement is true. Sorry if that sounds harsh, but it’s the truth. Those constant calls, e-mails, and letters simply become background noise to a business owner, so you have to know how to cut through the eardrum buzz.

Having a meaningful conversation with a business owner means grabbing that owner’s attention and ingratiating yourself to that owner.

Sending an e-mail or a letter rarely helps you make solid contact with a Seller. Those communications are passive and easy for Sellers to throw in the recycle bin (virtual or otherwise). For best results, pick up the phone and have a conversation.

If a company that isn’t for sale enters into a sale discussion as a result of an overture from a Buyer, that Seller may be in a strong-enough position to negotiate a deal with Buyer.

After all, Seller can easily walk away because Seller wasn’t planning to sell! Seller probably hasn’t retained a full-service investment banker at this point — an offering document isn’t being compiled, research isn’t being conducted — so the expense to Seller is relatively minimal.

  • Add a Comment
  • Print
  • Share
blog comments powered by Disqus
Advertisement

Inside Dummies.com

Dummies.com Sweepstakes

Win $500. Easy.