Title - Use a broker to negotiate with multiple buyers Tags - exitstrategy broker investing
Use a broker to sell your business by hooking you up with multiple buyers. There are two main advantages of negotiating with multiple buyers simultaneously:
- The competition will result in a better price
As an example, this happened when Jeff Bezos sought his first outside investment in Amazon. The venture capital firm Kleiner Perkins Caufield (led by John Doerr) and Byers and General Atlantic fought for the investment for a few weeks and the former eventually invested at a valuation of 10 million based on the initial offer by General Atlantic.
- You get to choose the best buyer
Some investors buy purely for financial purposes: to make a quick return on their investment. Other buy for strategic reasons. This is the type of buy you want because they’re more likely to pay a higher price and provide resources for growth.
[#warrillow2011builttosell]: John Warrillow (2011): Built to Sell: Creating a Business That Can Thrive Without You, Portfolio.
[#stone2013theeverythingstore]: Brad Stone (2013): The Everything Store: Jeff Bezos and the Age of Amazon, Transworld Digital.