HomeBlogBusiness ProcessWhat does off-market mean when selling a business?

What does off-market mean when selling a business?

There’s a whole section of the business sale market you might not be aware of. If you’re looking to buy or sell a business, it’s important you’re clued up. You might be surprised to hear that most businesses sold in the UK are sold ‘off-market’, which means they are never listed for sale publicly.

 

The entire process – the viewings, negotiations, sale and takeover – are completed quietly and under cover.

 

There are several benefits to this. First, it is usually cheaper and faster. Second, you will have more control over who buys your business, and this is very important, not just because you likely hold some sentimentality towards your business, but also because you want to make sure your company and its staff are protected and in safe hands.

The definition of off-market when selling a business

Selling off-market means selling your business directly to an interested buyer without ever advertising it as for sale.

 

If you haven’t been approached by someone who wants to buy your business but you want to sell it in this way, there are two ways to push through this type of transaction. You can find a buyer yourself, or you can use a business broker who works off-market.

 

This is widely regarded as the best way to sell a business, so it is certainly something to consider if you’re looking to move on.

Why is selling off-market the best way to sell your business?

There are a few good reasons to sell your business off-market.

 

First of all, you’ll avoid selling fees, which can be extortionate. This is the key driver for most people. Sell-side business brokers usually charge thousands of pounds to advertise your business for sale and then a further 1% to 10% of the final sale price. If you cancel the sale, they might charge you for that, too. Selling off-market means you won’t need to pay a broker to introduce you to sellers, and your profit will be bigger.

 

Selling off-market is also likely to be quicker, because you’re matched directly with a genuine and serious buyer. If your sale falls through, your off-market business broker will likely have several other interested parties ready to take the slot.

 

We’ve already mentioned this earlier, but off-market selling gives you more control over who buys your business, which means your employees are more likely to be looked after. An off-market business broker will help you find the perfect buyer, so you’re likely to find a buyer who makes you comfortable much quicker.

 

Finally, off-market selling means your cards stay close to your chest. This might be important, because you might be worried that your customers jump ship when they hear you are planning to sell, or your employees might become disgruntled and upset. Off-market sales stay between the buyer, the seller, and the business broker. That’s it.

How do I sell a business off-market

You might already have a potential buyer, in which case you’re ready to go.

 

But how do you find a buyer for your business if you can’t publicly announce that you want to sell it?


The easiest thing to do is most certainly to look for a business broker. This type of broker is typically well connected, and they can mediate between private sellers and those looking to buy a business.


But they won’t just match you to anyone, they will match you with a suitable potential buyer, assist you with your due diligence, negotiate the terms of the sale, liaise between you and the buyer, and offer you expert advice and support throughout the acquisition, to make the whole process as simple as possible.

 

And there’s more good news! If you choose the right broker, they’ll collect fees from the buyer, which means you won’t need to pay anything at all.

Yorkshire Change can help

Yorkshire Change can help you navigate the selling of your business. Yorkshire Change partners with clients to maximise the success of mergers and acquisitions by helping businesses through major change and transformation.

 

Most mergers and acquisitions fail. Yorkshire Change is here to make sure you have the absolute best chance of navigating your business through an off-market sale. We’ll support your senior management team to navigate major change with as little impact on staff, customers and profit as feasibly possible.

 

Our key service is to make sure businesses come together as one, and we’re specialists in mergers and acquisitions. If you’re buying or selling a business, we’d love to speak to you.

 

We’re all about working closely with our clients from day one and matching them to our best consultants. If you would like to find out how we can help you, or if you just want to find out a bit more about our approach or our current projects and clients, please contact us for a no obligations discussion.

 

Call 0333 090 8710 to speak to a dedicated member of our team. If you would rather receive a call back, please fill in the contact form on our ‘contact us’ page.

 

 

 

 

 

 

 

 

 

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We’re all about working closely with our clients from day one and matching them to our best consultants. If you would like to find out how we can help you, or if you just want to find out a bit more about our approach or our current projects and clients, please contact us for a no obligations discussion. 

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