Is my business attractive to an overseas buyer? - Bluebox
More than 60% of deals completed by our team have been to overseas buyers. Typically, this is not a result of an expressed desire from the outset to sell overseas, but rather a result of the overseas buyer community ‘paying the best price’.
The strategic premium achieved from an overseas buyer can be significant and so including such buyers in the mix is highly recommended.
To maximise the attractiveness of your business to an overseas buyer, you should focus on the following four things to begin:
- Size Overseas buyers typically focus on UK businesses once they are of a certain size. Businesses generating less than £3m revenue, for example, are likely to be too small;
- Management team Unlike a domestic buyer, an overseas buyer will often seek assurances that the management team is able to lead what will represent their “domestic business” without much input. Absent a sufficiently strong team, they may get cold feet;
- Overseas appetite Showing an overseas buyer how the business operating model could be used abroad (ways in which they can sell your existing product to their existing customer base) can help to encourage them to pay for ‘sale synergies’;
- Marketing The first thing an acquirer will do when they hear about a business is ‘Google’ it. If that business is ‘picked up’ in the press overseas, it will provide the acquirer with further comfort that the business is of substance.
These four things are a starting point, but it is also important to use a good advisor with international access. By doing so, you may be fortunate enough to discover that the price an overseas buyer is willing to pay may well be in excess of any domestic suitors.
Bluebox takes pride in our access to overseas buyers. If you wish to discuss how we access such a community or get an indication of who your most likely overseas buyers will be, please do get in touch - we would be delighted to offer a free consultation. Or if you would like to attend one of our upcoming events, please click here for more information and to register.