Crafting a letter to express interest in buying a business

DullGreyGuy

Elmroad82 said:

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.

He is the seller, not the buyer. He is heading to retirement and wants to sell. 

In principle a £100k price, very crudely, would buy a business making £12k-£18k profit per year on a EBITDA basis assuming the loss of the owner won't cripple the business. Intending to run the business, rather than just invest, makes things more complex as you need to find the diamond in the rough.