Choosing a buyer
Legacy and Choosing the Right Buyer
By Lee Smith · · 3 min read · Updated
As entrepreneurs, our focus is often on growth and expansion, which is completely understandable. But we must also pay close attention to our exit plan, especially when selling to an external buyer. The legacy of the business is at stake, and selecting the wrong buyer can have serious consequences.
Understand the buyer's business and priorities
When considering potential buyers, it is crucial to understand their business and priorities. The highest bidder may not be the best fit for preserving the legacy of your business.
By studying the buyer's business model and operations, you can assess their intentions for acquiring your company. Make sure the buyer's long-term priorities align with your own, to avoid detrimental effects on your business and its legacy.
Succession planning
Succession planning is another key factor when selecting a buyer. A buyer without an established management team ready to take over may not be the best fit for preserving your legacy.
Working with buyers who have a strong management team in place ensures a smooth transition and long-term success for the business.
Culture and brand
The culture and brand of the buyer are also important considerations. Mergers and acquisitions fail because of differing cultures more often than because of the numbers, so it is crucial to assess whether the buyer's culture aligns with your own.
Understanding their external brand in the community will tell you whether they will strengthen or diminish the legacy of your business.
In conclusion
Sell to a buyer whose priorities align with your own. Financial considerations are important, but the legacy of your business should not be overlooked.
Working with buyers who understand the importance of preserving your legacy helps you find a home for the business that will honour and build upon the foundations you have worked so hard to establish.
Related reading: Legacy or liability? How to choose a buyer · How to choose the right buyer to protect your company's legacy · Sell your business
Questions this article answers
What should I look at before choosing a buyer for my business?
Three things: the buyer’s business model and what they actually intend to do with your company, whether they have a management team ready to take over, and whether their culture and external brand would strengthen or weaken your legacy. Financial terms matter, but they should not be the only test.