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Jun 6, 2012

Selling Your Business? Write Ads That Attract Pre-Qualified Buyers

Writing the perfect advertisement for your business for sale is a fine art. Here's what you should reveal and what you should not.

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Advertising your business can result in more leads and a higher ultimate selling price, but revealing that you are selling can cause problems with employees and suppliers and/or give competitors a leg-up with your customers. The key to advertising your business walking the line between effective marketing and preserving confidentiality is a well-crafted ad.

 Writing business-for-sale ads is an exercise in fine balance.

  • You have to entice prospective buyers about the current and potential strength of your business without even slightly stretching facts, which you'll have to warrant as accurate at the time of an actual purchase.
  • You have to tell enough about your business to make buyers think they'd like to know more, but you can't tell so much that readers—particularly competitors—can piece together the facts into a description of your business.
  • You have to keep ads short yet build enough interest and trust to prompt prospective buyers not just to respond, but to respond with information about their financial and business capability to make a purchase.
  • You have to indicate enough about your business size and price to attract interest from those qualified to make the purchase while allowing those who don't match up with your asking price to rule themselves out.
  • And maybe most importantly, you have to make your business stand out from the crowd of other businesses listed in the same place, whether it is on an online business-for-sale marketplace, a classified ad, or an ad in a trade publication

It's a tall order.

Here are some easy-to-follow tips on what to know and what to do as you develop your business-for-sale ads.

Step 1. Provide a concise yet thorough description of your business offering.

In a matter of sentences, your ad needs to provide an overview of what your business is and why it's an attractive purchase opportunity, all without stretching the truth or presenting information you can't later warrant as true and accurate.

Here's what to convey:

What buyer wants to know

Advice to follow

What your business is and does

Be clear and specific. Instead of "Manufacturing Business" say "Manufacturer of low-tech product for high-tech industry." Instead of "Advertising agency" say "Profitable 15-year advertising agency in growing metro area serving a roster of regional and national clients."

Where your business is located

If your business is in New York City, say so, but if it's in a small town with only a few other businesses that fit the description, stating your exact location may give away your identity and sale intentions. Especially online, buyers search for businesses by location, so you can't avoid the location issue altogether. Instead, give a general description. Instead of "Columbus, Ohio," say, "Located in Ohio," or "Located in a vibrant Ohio college town."

How long you've been in business

Buyers want to know if your business is established. You can convey this information in your description (profitable 12-year old jazz bar) or in your statement of strengths (serving government and commercial contracts since 2002).

The strengths or attributes that make your business attractive

In your ads, feature your strengths. "Profitable and growing," "in highly desirable location," "strong earnings," "well-known, highly regarded business name," "loyal staff and clients," "strong online and social media presence," "good growth potential." Just be sure every adjective you use can stand up to scrutiny, as you'll need to warrant accuracy when signing a purchase offer.

Your asking price

Not everyone agrees about stating an asking price, feeling it might scare some buyers away. Most advisors agree, however, that the advantages outweigh the disadvantages. Consensus is: State your asking price and most recent annual revenues. For one thing, online buyers shop by price category and if your price is missing your business won't appear in the results. For another, if you don't list a price you risk inspiring inquiries from those without the capabilities to complete a deal of your size.

Why you're selling

While it's not required, a description of why you're selling often inspires trust and increases response rates. Keep in mind that some reasons are very understandable; i.e., "retirement" or "death in the family," while others will discourage buyer responses; i.e., "burned out," or "declining business."

 

Business sale advisors agree on one point above all others: The less specific the business description presented in your sale ad, the more your business looks like any other. Your job is to compress the facts and strengths into a short ad that makes a buyer want to know more. Certified Business Appraiser Glen Cooper gives this example:

"Manufacturer for Sale. Call Broker. 555-1212" will get a minimal response. Describing the business for sale as a "Manufacturer of low-tech product" will get a better response. "Manufacturer of low-tech product serving a high-tech market" will get the best response.

Bottom line: Adding details to an ad usually improves response.

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Mike Handelsman is group general manager for BizBuySell.com and BizQuest.com, the Internet's largest and most heavily trafficked business-for-sale marketplaces. @BizBuySell