Approaching for sale

Approaching for sale

In an M&A, the way a buyer approaches the seller is crucial. So, the buyer should be very careful when he approaches a prospective seller.

Most buyers employ a third party to conduct the initial meetings with the prospective sellers. This third party contacts the various companies which match the buyer’s criteria. Now, a direct approach is not advisable i.e. asking a blunt question like “Is your company for sale?” is not the right way to approach a client. Instead, the advisor should ask if the client is on a lookout for a strategic alternative or a complementary working situation which would enhance the value of the business. Such an indirect approach is always better as it encourages the seller to think about a partnership.

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