Most business owners wait to think about a sale until they're actually ready for it. But one of the most effective things you can do to secure a good sale — both on price and process — is to start much earlier: by quietly building a pool of people who could be relevant future buyers.
Why is it an advantage to start early?
If you sell under time pressure — because you suddenly have to, or because you only start looking for a buyer the day you decide to — you're typically in a weaker negotiating position than if you'd spent time finding and developing the right relationship in advance. If, on the other hand, you already have one or more people who know the business and have shown genuine interest, a sale can go far faster and more smoothly once the time comes.
How a partnership listing can be part of the strategy
A partnership listing is a low-key way to signal that you're open to the right relationship, without requiring you to be ready to sell now. Over time, it can bring you into contact with:
- Aspiring entrepreneurs who want experience running a business before jumping in fully — and who might grow into the role of your successor.
- Industry-related businesses or investors who already know the field, and who see a future takeover as a natural expansion.
- Current or former employees who might want to take over eventually, but need time to prepare — financially and professionally.
How does this differ from an ordinary generational transfer?
A generational transfer typically involves a transfer within the family. Building a future pool of buyers through partnerships is broader — it's about keeping the door open for any serious candidate, whether it ends up being a family transfer, a sale to an employee, or a sale to a completely external buyer you first meet through a partnership.
What does it cost to keep this strategy running?
A partnership listing is free to create and free to renew — a clear investment of time compared to the value it can create, if it leads you to the right future buyer well in advance, rather than having to find one in a hurry the day the decision to sell is made.
What should you do along the way?
- Keep the listing up to date — even if a long time passes between enquiries.
- Take conversations, even when you're not ready to sell. Every conversation is a chance to learn what potential buyers are actually looking for.
- Keep notes on the candidates who seem serious. The day you're ready to sell, you already have a list to start from, instead of starting completely from scratch.
Frequently asked questions
How long before an expected sale should I start building contacts?
There's no exact answer, but the earlier you start, the better — some owners start several years before they actually expect to sell, precisely to have several developed relationships to choose from when the time comes.
Isn't it disingenuous to keep a partnership listing running for years without selling?
No. As long as you're honest that you're not looking for an immediate sale, it's a completely legitimate and common way to prepare — and it costs virtually nothing to keep the listing going.
What if none of the candidates from the partnership end up wanting to buy?
Then it still hasn't cost you anything beyond time and a small annual fee — and you can always supplement with an ordinary sale listing the day you're ready to sell.
Ready to start building your future pool of buyers? Create your partnership listing here, or read more about generational transfers, if a transfer within the family is also an option for you.
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