If you want to attract birds, put out bird food. Please continue reading; this is more than a discussion about birds.
In order to successfully sell your company to the right kind of buyer at an attractive price, you need to give them something they really want… just like attracting beautiful birds to your backyard.
Most of your local species of birds are attracted to bird food. There are many types and brands of bird food. Some are generic and do a good job of attracting a wide range of birds. Some are more targeted, to attract specific breeds. Selling your middle market aerospace and defense company is similar to feeding birds.
Buyers are not just going to magically appear when you want to sell. Similarly, birds are not just magically going to show up because you want to see them. You have to offer them something they want. The better a job you do to give them exactly what they want, the higher the probability that you will attract them. In the case of attracting birds for you to watch in your backyard, you might be looking for a specific species or a large variety. In the case of your company, you might want to sell to a private equity firm that you like, or to a strategic buyer that has a great reputation. Or it might be any buyer if the price is sufficiently attractive. However you define ‘best buyer’ – that is what you want to attract.
Being able to attract the right kinds of buyers requires two things. First, you must define “right”. Second, you have to offer them something they want. This is one of the reasons that many of our sell-side clients first retain us for our LRSP services (https://www.aldermanco.com/long-range-sale-planning/), to help them better identify what they are offering, so as to attract the right kind of buyers.
If you want to attract high quality buyers at aspirational prices, you need to offer them things that they truly want. That concept is no different than feeding the birds.
Have a great day everyone,
William Alderman
Founding Partner
