Crafting a letter to express interest in buying a business

Elmroad82

Hi,

Id like to approach buying a business in a particular sector and intend to send an email to owners of a few companies. Can anyone give me some pointers of what to include / exclude/ length of email. As a business owner what would make you take notice of my email?

I’ve tried to find a template online but they’re mostly based on what an offer is. My email is an introductory email sounding out intent to sell..more of a “Hi, I’m interested in buying a business in this particular sector and found it on google. If this is something you’d like to discuss further fancy a coffee”

thanks 

Grumpy_chap

Elmroad82 said:

Hi,

Id like to approach buying a business in a particular sector and intend to send an email to owners of a few companies. Can anyone give me some pointers of what to include / exclude/ length of email. As a business owner what would make you take notice of my email?

I’ve tried to find a template online but they’re mostly based on what an offer is. My email is an introductory email sounding out intent to sell..more of a “Hi, I’m interested in buying a business in this particular sector and found it on google. If this is something you’d like to discuss further fancy a coffee”

thanks 

If I received a letter like that, I'd assume it was a scam or a chancer.

Why are you looking to buy an existing business rather than start your own?
What finance do you have to fund the business acquisition?
What professional advisors do you have in place to guide you?
Why would a business owner sell to you rather than market the business for sale to the wider portfolio of potential partners?

swingaloo

As a former business owner I can tell you that if that letter had arrived on my desk I would laugh and put it in the bin.
But who knows, Richard Branson may have differing criteria 

user1977

Reminds me of the "would you like to sell your business" spam I started getting on LinkedIn when my job title changed to something including "Director" - no, I'm not interested in selling the business to you, even if I owned any of it...

Elmroad82

swingaloo said:

As a former business owner I can tell you that if that letter had arrived on my desk I would laugh and put it in the bin.
But who knows, Richard Branson may have differing criteria 

That’s helpful in that I know what not to write but what kind of wording would make you interested in discussing a potential business sale? Thanks 

Tucosalamanca

I get probably 20-50 speculative emails each day, it's an ongoing nuisance.

Not wanting to be rude but you sound like a dreamer. Genuine investors don't send emails, write speculative letters or look for businesses to buy on Google.

Unless you have carefully researched the business, how would you know that it's a good opportunity, or that you could even afford it?

Realistically, if you don't already know the business owners or someone who can introduce you, or already operate within the industry (probably with shared connections), I'd say that you're chances are limited at best. 

Making enquiries in person and talking to people is the only way to go, email is a complete waste of time, imo.

Savvy_Sue

I can find no reason to disagree with all the above. DS1 owns a Ltd, and the Company Address is our house. At least once a week he gets a letter asking if he wants to sell. I have no idea how many emails arrive ... 

It's a small company we're talking about, and a niche field. IF he wanted to sell, I'm pretty sure he'd either sell to someone he knew, probably already involved and 'invested' in the business - not necessarily financially but in terms of work done. OR he'd be canvassing the market to consider whether anyone already running a similar business to his was interested in buying - and he knows the businesses similar to his own, and the people running them. 

So, you're interested in a particular sector. Who do you know in that sector? What experience do you have already in that sector? If the answers are 'no-one and none', in the nicest possible way, why ever do you think anyone would want to sell to you? You need to get to know the people - local Chamber of Commerce? - and get the experience. 

DullGreyGuy

Elmroad82 said:

Id like to approach buying a business in a particular sector and intend to send an email to owners of a few companies. Can anyone give me some pointers of what to include / exclude/ length of email. As a business owner what would make you take notice of my email?

I’ve tried to find a template online but they’re mostly based on what an offer is. My email is an introductory email sounding out intent to sell..more of a “Hi, I’m interested in buying a business in this particular sector and found it on google. If this is something you’d like to discuss further fancy a coffee”

What sort of ballpark of money have you got for this investment? 

Do you just want to be sole shareholder or active in the day to day running of the business?

My business is pretty much selling my time and knowledge so its not really something that can be sold, despite that I still get occasional random emails about selling it (far less than the number of estate agent letters about selling my home). 

Ultimately businesses do get sold, sometimes speculatively, but it's about standing out from the spam. A friend has been discussing selling his business with someone for about 18 months now, will ask how first contact was made because they dont seem to really know him or the market. His will be a 8 figure deal I imagine. 

Elmroad82

DullGreyGuy said:

Elmroad82 said:

Id like to approach buying a business in a particular sector and intend to send an email to owners of a few companies. Can anyone give me some pointers of what to include / exclude/ length of email. As a business owner what would make you take notice of my email?

I’ve tried to find a template online but they’re mostly based on what an offer is. My email is an introductory email sounding out intent to sell..more of a “Hi, I’m interested in buying a business in this particular sector and found it on google. If this is something you’d like to discuss further fancy a coffee”

What sort of ballpark of money have you got for this investment? 

Do you just want to be sole shareholder or active in the day to day running of the business?

My business is pretty much selling my time and knowledge so its not really something that can be sold, despite that I still get occasional random emails about selling it (far less than the number of estate agent letters about selling my home). 

Ultimately businesses do get sold, sometimes speculatively, but it's about standing out from the spam. A friend has been discussing selling his business with someone for about 18 months now, will ask how first contact was made because they dont seem to really know him or the market. His will be a 8 figure deal I imagine. 

I’d like to fully run the business (with a transition period from the current owner). I’d have over 100k. I’d be interested in how your friend made contact and you’re right, how do you stand out from the crowd when approaching a business owner.

theoretica

Perhaps look out for, and join if you can, small business associations, owners groups etc in both your geographical and sector area.  Learn all you can, give a good impression and let the grapevine know you might be interested in buying into something appropriate.  People talk to each other.

Businesses do get advertised (and be sure to look out for news of ones which might be shutting or retiring) but good small businesses that are more than a one person concern often go to someone who already works there.  However, my very limited knowledge of business buying seems that 100k might well be looking for a small one person business.

https://www.facebook.com/KatyaEmbroidery/posts/pfbid02A5XwgCjks3ByFVPDUMHLsMyrCoYdkj62HCaDKQngr2ptR5omSjfmwGXCtXN69Y7Yl

Grumpy_chap

Elmroad82 said:

I’d like to fully run the business (with a transition period from the current owner). I’d have over 100k. I’d be interested in how your friend made contact and you’re right, how do you stand out from the crowd when approaching a business owner.

The other questions I asked upthread remain valid considerations:

Grumpy_chap said:

Why are you looking to buy an existing business rather than start your own?
What professional advisors do you have in place to guide you?
Why would a business owner sell to you rather than market the business for sale to the wider portfolio of potential partners?

I'd also add - is the £100k that you are looking to invest your own cash, or is it to be financed?