Marketing a Business for Sale: A Structured Approach for the Mid-Market

Selling a mid-market business requires a disciplined, methodical approach to achieve a successful outcome. The process relies on industry knowledge, established networks, and direct outreach to decision makers at potential buyer organisations. For specialised businesses, where buyers are typically other medium-sized companies, the focus is on identifying and targeting specific buyers rather than using mass-market advertising. The decline of print media has made traditional advertising less relevant and while online platforms exist, they are generally not suited to mid-market or larger transactions.

Key Steps in the Marketing Process

1. Research Market Buyers
   A thorough understanding of the business, its customers, competitors, and industry structure is essential. The advisor will consider:

• Who are the most likely buyers?
• Are there related industries that might find strategic value?
• Who is actively acquiring in this space?
• Has the seller received unsolicited approaches?

2. Review of Target List
   The advisor and seller collaborate to develop a list of potential buyers, identifying key contacts and decision makers. An “avoid list” is also created to prevent disclosure to adversarial competitors or unsuitable parties.
3. Initial Contact with Buyers
   Initial outreach is typically via a blind email or phone call, withholding the seller’s identity. The information provided should be sufficient for potential buyers to assess whether the opportunity is worth further investigation. Multiple contacts may be required to engage even the most likely buyers. In some cases, the seller may have existing relationships that can be leveraged.
4. NDA and Online Data Room
   Once an NDA is signed, selected buyers receive access to key documents in an online data room. Access is controlled and documents may be watermarked. Sensitive information, such as customer and staff details, is redacted or withheld until there is a genuine level of interest or an offer is received.
5. Follow Up
   Advisors maintain contact with interested buyers, answering questions and providing additional information as needed. Pricing expectations are often discussed to ensure continued engagement.

Price and Terms Negotiations
Pricing and deal structure are developed through various methodologies, considering risk mitigation, asset valuation, tax implications, financing, and contingent payments. In some cases, the price is “reverse engineered” to fit the expectations of both parties. Most sellers and buyers have a price in mind and are satisfied if this is achieved. Simple deal structures generally facilitate smoother transactions and fair deals typically result in the business continuing to develop and grow under new ownership.

Conclusion
The sale of a mid-market business is a structured process that benefits from careful planning, targeted outreach, and disciplined confidentiality. By following a systematic approach and working with experienced advisors, sellers can improve the likelihood of a successful transaction while minimising risks to the ongoing business. Ultimately, a well-managed marketing and sale process helps ensure that both buyer and seller achieve their objectives and that the business is positioned for continued success under new ownership.