Selling the Intangible Company by Thomas Metz

Author:Thomas Metz
Language: eng
Format: epub, mobi
Publisher: John Wiley & Sons, Ltd.
Published: 2010-05-10T16:00:00+00:00

Generate Alternatives

Generating alternatives is a critical part of the sale strategy. It can be a significant amount of work to generate alternatives but it is well worth the effort. The best way to generate alternatives is to contact a wide range of potential buyers, including the non-obvious buyers. There is simply no substitute for additional buyers. If we contact 100 to 125 potential buyers in a search, it almost guarantees that there will be alternative buyers. Sure, the majority of these companies do not turn out to be good buyers; however in the process we have uncovered a small set of companies that are good buyers.

One of the biggest mistakes that a CEO makes when selling his own company is not generating enough alternatives. He thinks he knows the market and who the good buyers are. This is hubris and overconfidence. Most CEOs are too busy to spend the time to generate additional alternatives.

Generating alternatives is one of the tasks that the investment banker gets paid to do—to comb the market for all potential buyers. By doing so, the investment banker makes sure that all potential buyers are contacted and that the seller has alternatives. It is a significant amount of work but it is the right thing for the client.

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