An aggressive overseas buyer wants to buy me out. Help!

Dear Aunty B, 

I have been approached by an aggressive overseas buyer who wants to buy me out and has threatened to buy a business in competition to my own if I don’t sell to them.

I would like to sell rather than take them on because they dominate their home market and several others. However, I want to get the maximum price for the business but I don’t want to send them into the arms of my competitors. What should I add on to the price tag?

Tactics please!

Dear Tactics please,

Are you sure you want to sell? Sounds to me like you are not sure. Lots of companies come to Australia, stuff it up and retreat back home so have confidence in your own abilities.

If you decide you do want to sell then you are in a perfect position. You have something they want. They also showed their hand by directly approaching you in an aggressive way. Usually business brokers will add about 20% to the price of a business as an ambit claim because they expect the price to be tossed back and forth until agreement is reached.

Do the numbers, add your 20% and then work out what strategic value your company will bring the suitor. Add that, a little more and go for it. The competitor is trying to cower you into accepting a lower price with all that talk of competitors. Take the front foot. Be bold. What have you got to lose?

Good luck!
Your Aunty B

 

To read more Aunty B advice, click here.

Email your questions, problems and issues to auntyb@smartcompany.com.au right now!

 

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