Maximising value when selling a business can often mean selling to a customer or competitor and with the current market conditions as they are the return of the trade buyer has made this situation even more likely. Competitors are often the ones who are prepared to pay the best price, but this raises a number of tricky issues and careful management of the sale process is critical to achieving the right result.

Research, research, research
The value of research cannot be underestimated s, with the initial research playing a major role in the sale process and final outcome. The first step when selling a business is to prepare a list of likely buyers. Potential candidates need to be identified by in-depth research of the market the business for sale is currently operating in. This includes speaking to the major players, using the contact networks of the advisors and shareholders and utilising the international networks of corporate finance specialists to determine whether the likely purchaser will come form overseas. The next step is to agree a shortlist of parties to approach.

It is important to understand the strategies of the potential buyers, in particular their M&A plans. Some of this information will already be in the public domain but pre-screening buyers is an important step. The pre-screening process will involve speaking to, or meeting with, potential buyers to reach an understanding of their specific plans. This may even extend to asking questions relating to the area of the business that is for sale though not disclosing who the client is at this early stage

Understanding the key selling points of the business for sale and matching these to the strategies of the potential buyers is critical. There are key questions that need to be addressed at this time. Who is the business worth most to and what are the potential synergies available to the buyer – both sales driven and cost driven? Is there a gap in the potential buyer’s strategy, in terms of their product lines, market segment or geographic coverage that could be improved by acquiring the business that is potentially for sale. Which competitors would find the clients business attractive to buy, perhaps because it would rather own it than compete with it?

Lastly, it is important to understand the key individuals who drive the potential buyers business. Are they longstanding players? Perhaps they have a track record of buying and building businesses. Will they be able to gain support within their organisation to get a deal done?

What we often find is that the ultimate buyer is one of the first names on our list of potential buyers because it tends to be a competitor or a customer who ultimately sees most value in acquiring a business.

When Catalyst worked closely with a heating and plumbing equipment supplier the buyer was its major competitor.

The deal was quite a delicate one because we had to let the other side look at the details of the business but we could not reveal everything in the first instance. It had to be handled extremely sensitively.

The business was finally sold to its major competitor the outcome being a successful result for the vendors of the business who achieved an excellent price. The fit of the business with its major competitor made perfect sense but it was important to ensure that an advisor we understood the sensitivities of the deal without losing the buyer.

Tactics
In a transaction such as this you cant rush in and declare your hand too quickly when you are selling to a competitor and the same applies when selling to a customer. The first step is to prepare a tightly worded confidentiality letter which protects the client from potential buyers using information they learn from their discussions with you. This would include preventing them from using such information to target staff and customers, for example.

it is also imperative to hold back sensitive information until the last minute. Customer information is one such area, as it is vital to head off any attempts by the acquior to approach the customers of the business that is for sale until late on in the sale process. It is also at this stage that it will be important to make sure that there is a synergy between the two businesses. It should be clear that the two cultures are going to be a good fit and that all of the key individuals will be happy in their new roles.

Selling a business to a competitor or to a customer can be highly sensitive and fraught with potential pitfalls but, with the correct guidance from experienced advisors this may be the best route to take to meet the shareholders objectives.

No business can prosper without proper planning. If you are thinking about starting your own auto transport company then coming up with a sound business strategy is the first thing that you need to do. This step is so important that it can make or break your future as a transporter. In presence of a solid plan everything keeps working smoothly and you can earn maximum amount of profit. This article will teach you how to write a good business plan.

First of all you should educate yourself about the car shipping industry as well as business planning. On the internet you can find sufficient information on both these topics but you can also go to a library and read some books for some in-depth knowledge. Business planning is a very vast field and many books have been written on this topic. However, it is not necessary for you to go into too much detail. You should only know which factors play a role in the working of a business. In case of auto transportation these factors include number of competitors, size of clientele, geographical location of your company, your prices etc.

You can also take help from modern technology. For example there are many software applications which you can use to simplify the process of accounting. Many such applications can be downloaded from the internet for free. Automation of important tasks not only saves time but also helps you achieve a higher level of accuracy.

Before writing the actual business plan you should make a rough draft of what your auto transport company will be like. How many employees will it have? Which modes of transportation will be used? What sort of customer support will you provide? All these are important questions that you should try to answer in your first draft. Doing this is important because, with the passage of time, your preferences can change and updating a draft is way easier then changing the actual business plan.

Setting the price is another important thing that needs to be done. In the beginning your rates should be low so that you can take away some costumers from your competitors. However, if the rates are too low then people might start doubting the quality of your services. Once you have developed a good reputation in the market you can raise the rates to match other firms in the market. If you take care of all the things mentioned in this article then it will be very easy for you to make profits. Auto transport business is very lucrative. With the right business strategy you can get rich in a small amount of time.

Mailing fulfillment is one of the most important strategies of business. Large business houses for long have considered it absolutely vital for proper functioning of their operations. Today, irrespective of the business size, it has become a mandatory option for all the business brains. Small organizations may hesitate a little in implementing such services, but in the long run they stand to benefit. This need becomes all the more important for small business houses when they decide to increase their production volume. Naturally, they are forced to delegate a portion of their responsibility or under certain circumstances, the entire responsibility to the service providing organization.

Identifying the need, today there is no shortage of such service providing organizations. Obviously, the price for these services does not come very cheaply, but the organizations who decide to avail these services stand to gain a clear edge over its competitors. The need for stock management has become equally important along with mail fulfillment. The process for managing your stock starts from placing the order and continues till the end delivery of the ordered goods to the final customer. The middle phase constitutes of storage and safety. The vigilance of precious and fragile goods before the time of their delivery is a responsible task, and needs to be handled with utmost care. This gives you the clear idea of the importance of this aspect on your business. Therefore, it needs the supervision of experienced and qualified personnel at every step.

The mailing fulfillment in the chain of demand and supply comes both before and after the phase of managing the stock. The importance of mail fulfillment is increasing because managing single proprietorship business is becoming difficult everyday. The task of taking care of every aspect of the business for a lone individual is a tough ask and has its own harmful effects. The effects show up at the time of the delivery process of goods. Regular delay in the delivery process of your merchandise becomes a norm, and the reputation of your business suffers badly as a result of it. On the other hand, even if you manage to deliver the goods with not much of a delay, they tend to get damaged or lose their quality in one way or the other. The quality of service just does not remain to the expected standard!

Therefore, lack of planning and judicious investment tarnishes the goodwill of the business forever. The worst result occurs when the business house loses its customer base. Both prospective and existing clients lose their faith on the mailing fulfillment company. Your years of hard work go into vain and the financial loses cut a very sorry figure. However, all such damages can be prevented and covered by availing the professional services of a stock management and a mailing fulfillment expert.

So, help your business from getting crippled on a permanent or a temporary note. Remember, a little price that you pay today can give you loads of revenue tomorrow!