Targeted outreach vs. a broad ‘auction’

When selling your business, you have the option of targeting specific buyers through a direct outreach strategy or casting a wider net through a broad auction process. Targeted outreach involves identifying and approaching potential buyers who have a strategic interest in your company, offering a more controlled and discreet sale process. This method can be particularly effective for businesses in niche markets or those looking for a strategic fit with a specific buyer profile. Conversely, a broad auction process aims to generate competitive tension by engaging multiple potential buyers simultaneously. This approach can potentially lead to higher offers but requires careful management to maintain confidentiality and control over the process. The choice between targeted outreach and a broad auction depends on your business's specific circumstances, your objectives for the sale, and the advice of your investment banker.