Target marketing 'hits the spot'
In the current business climate the old methods of selling businesses no longer work. The scattergun approach to advertising businesses for sale no longer draws the desired response.The uninitiated might judge the success of a Newspaper's business sales potential by the number of ads displayed. But at Lloyds Business Brokers, we noticed that we were getting poorer and poorer responses from more and more ads. Something more than what others were doing was required. How do you sell my business - you ask?
The solution we adopted is target marketing, which is a combination of direct marketing to identifiable potential buyers, backed up by directed advertising in specialist publications.
Target marketing is based on the premise that the most likely buyer for a specialised business is someone from within the industry, or in a synergistic business. Telemarketing is used to ensure that our expression of interest letters are properly and individually addressed to reach their target, the potential buyer, and to maintain maximum confidentiality.
Lloyds have carefully researched and compiled an extensive list of potential buyers in every industry category, and are continually updating this information. This list is compiled with the aid of a very specialised computer programme called SAMM (Sales And Marketing Management).
Our target marketing is backed up by directed advertising in the most appropriate publication or trade journal, to pick up any potential buyers that may have been overlooked, and to reinforce the tender to the targeted buyers.
The difficulty is - how to sell a business without telling everyone it is for sale, whilst still maintaining utmost confidentiality for the vendor? This is addressed by ensuring that a binding "Confidentiality Agreement", incorporated in the "Expression of Interest", is signed prior to any business name or details being disclosed.
Those buyers who have signed the Expression of Interest/Confidentiality Agreement receive a Business Profile, compiled in co-operation with the Vendor's Accountants, and are then invited to attend a Forum, or Open Day, attended by both Accountants and Solicitors for the Vendor. This eliminates protracted individual negotiations with each buyer, and sets in motion dynamics between competing buyers that would usually only be generated in an Auction situation.
Private Tenders are then called. This process not only creates buyer competition to maximise selling price, but also condenses the time to sell the business.
Lloyds Business Brokers have compiled an impressive record of business sales in up to $20 million price bracket. A copy of this list is available upon request.
Following are several case histories where target marketing has worked with conspicuous success:-
Ausmine
A highly specialised manufacturer of mining survey equipment. Seventeen potential buyers were identified Australia wide, each of whom could gain considerable Market Advantage by preventing their opposition from acquiring the business. The ensuing fierce competition between the purchasers achieved a price well in excess of the vendor's reserve.
Wrights Industrial Waste
A seventy-year-old family company which had controlled the waste disposal industry in a major provincial city. Telemarketing reduced an initial list of over 2,800 prospects down to 28 potential buyers and eventually 8 Tenderers. The sale price achieved exceeded the vendor's reserve.
Bentala Foods
A specialised processor of fresh vegetable products for the food service industry. A desire to keep the business out of opposition hands motivated the eventual purchaser to increase his initial bid by 50%.
Farnsway/Faminco
A specialised Underground Mining Contractor. Lloyds Target Marketing located a multinational open-cut mining contractor with no underground mining division, who was able to derive considerable synergies through acquiring the business to add to the range of services it could offer to offer its clients.
Ranger Electrical
A specialised DC electrical power backup installation and maintenance service. A major battery manufacturer, who had been trying to break into enter the local market for some time, paid a premium price for the business to acquire the clients, with the subsequent opportunity to replace all the existing competitors' batteries with their own brand at the scheduled replacement time.
Cafe Rue de Paris
A landmark cafe. Lloyds were able to set a record for the highest price paid to date for a cafe in Brisbane.
FCI Burndy
Manufacturer of patented Electrical Cable Support systems. This loss-making division of a Multi-National French Company was marketed successfully to deliver 25% market share to the Company's major competitor.
Terra Firma Fertilizers
A manufacturer of Retail branded fertilizers marketed to a manufacturer of bulk commercial fertilizers looking to enter the higher-margin arena.
Network Imports
Exclusive Australian importer of well-known brand of homewares, with a T/O of $12m, created an intese bidding war which resulted in a sale to a synergistic buyer from China, at a price well in excess of the Vendor's reserve.
Killcare Marina
A Lifestyle business on the NSW Central Coast. Lloyds International Marketing Campaign produced a cash buyer from Moscow.
Densley Freight Services (in Receivership)
Sold on behalf of the Receivers, application of Lloyds Target Marketing produced some spirited bidding which resulted in a successful sale as a "Going Concern", at a price that allowed a full payout to Creditors.
Lloyds Business Brokers can assist specialised businesses, particularly those in niche market businesses, to sell by Private Tender in this manner, so that the impending sale, and the name of the business remain confidential. AND, of course, to maximise the selling price.
The best news is saved till the end:
Free pre-sale business evaluation
Contact us for a no-obligation, free pre-sale business evaluation to determine the current market value of your business. That way, you can decide, without risk, whether it is worthwhile to attempt a sale at this time.Lloyds Business Brokers can work with you and your Accountant to produce a professional Business Profile designed to present your business in the best possible light.
Commission only on sale
We have enough confidence in our ability to sell your business to charge commission only in the event of a successful sale, subject to a minimum of $10,000. Reasonable travel costs outside of South East Queensland, incurred with your written consent, and the cost of any Advertising or additional Financial Services agreed to between us are invoiced as they are incurred.No costs are incurred without your prior written approval.
Lloyds Business Brokers are not publishers, and earn no secret commissions from the publishers of any media we may recommend for the placement of your advertising.
