A longlist of potential buyers is an important step in selling an SME. This is often done by an advisor, but you can also do this yourself. In this blog, you'll learn how to build a longlist, what sources you use and why this is crucial for a successful deal.
The sale of an SME starts broad. A longlist is nothing more than an overview of potential buyers: parties that might be theoretically interested. It prevents you from betting everything on one candidate too quickly and gives you more control over the process.
An advisor often compiles this list, but with the right approach, you can also do this yourself. By mapping the playing field, you increase the chance of multiple bids, a better negotiating position and ultimately a higher sales price.
Consider what kind of buyer suits your company. This can be a strategic buyer who knows your industry well, a competitor who wants to expand, an investor who wants to accelerate growth, or an experienced manager who gets in via a management buy-in.
There are plenty of places to find potential buyers:
See which parties have recently acquired companies in your sector. Once they're active, there's a good chance they'll be interested again.
A longlist can contain up to 20 to 50 names. In the next step, you filter this into a shortlist of the most promising candidates.
Not every name you collect is a serious candidate. Weigh parties on their financial strength, strategic fit, culture and vision, and geographical relevance.
Advisors have networks and databases that accelerate the process. However, as an entrepreneur, you often have a better idea of who really suits your company. With your own longlist, you stay in control and you can call in an advisor later for refinement or validation.
At BestBonobos, we are developing a tool that automatically compiles a first longlist. Based on sector, size and strategic criteria, our platform helps you quickly gain insight into promising buyers. This saves costs and time, without being dependent on an expensive intermediary.
A strong longlist is essential when selling your SME. It gives you control, increases your chances and strengthens your negotiating position.
👉 Sign up for the BestBonobos beta today and learn how our platform helps you identify the right buyers and go through every step of the sale in a smarter way.
📩 Sign up for a beta? Fill out the form at the bottom of this page and take the first step towards a successful takeover.
Soon, we expect to start with a limited group of users who can test the platform. You get full functionality and give us feedback. In return, you'll soon be able to use our platform for free for six months! Feel free to sign up now to be kept up to date. You will then receive an invitation in due course:
