When we start a sale process, we always ask our client if they have a folder or file, or a list of potential buyers they’ve spoken to over the years.
Most buyers have some kind of record of these interactions. Some keep meticulous records, others just have informal notes. Whatever the case, it’s helpful for us to know who you have interacted with in the past.
While you will be contacted over the years by many non-credible buyers, it is important for you to treat the credible buyers appropriately. A quick search on Google or LinkedIn will help you make a determination whether a buyer is credible to you or not. If you’re not sure if a buyer is credible, email a friendly M&A banker and ask them for a quick read.
If you’re the owner of a middle-market aerospace and defense company considering selling at any point in the future, I encourage you to keep a good record of these interactions.
Even if some of those interactions may be 10 years old when you go to sell your company, they can be extremely valuable to you. We encourage you to be receptive and spend a few minutes talking to credible potential buyers, even if you are many years from having any real interest in selling.
Even 10 years later, many of those conversations may actually result in having key decision makers of potential buyers remembering your old conversations and looking back favorably. They can result in having discussions with important buyers, which start with a positive view of your business. We cannot overstate how valuable that can be.
When it comes to credible potential buyers, spend time over the years politely interacting with these individuals. Keep meticulous records and let them know that while you’re not a seller today, you may be someday in the future, and you will reach out to them when the time is right for you.
As the adage goes, “don’t burn bridges.”
Have a great day,
Bill Alderman
Founding Partner
