How to prioritise buyers for your business
A useful list explains why each party could buy, how it would fund the deal and what risk you take by approaching it.
The longlist
The longlist brings together trade buyers, investors, competitors, buy-and-build platforms, family offices, search funds and, where relevant, your management team. For each one it should record the reason for fit, size, region, past acquisitions, decision-makers and confidentiality risk. Companies House filings and published deal announcements are a good place to check what a buyer has actually done.
The filters that matter
Financial capacity, strategic logic, typical deal size, sector experience, any regulatory approvals needed, speed of decision and behaviour in previous processes. Size alone does not make a company a good buyer.
The shortlist
The shortlist focuses on priority parties and sets the order of approach. You should approve it and mark any exclusions before the teaser goes out. Keep a reserve list so you still have options if the first wave does not progress.
Competition without exposure
A staged process keeps options open without advertising the company. Use comparable messages and deadlines, but adjust access to information to the risk each party represents.
Measure progress by NDAs signed, IMs released, meetings held, indicative offers received and proof of funding, not by the number of emails sent.
Who decides who is contacted
The adviser proposes and carries out; you approve. Record excluded parties, pre-existing contacts and conflicts. No buyer should receive your identity or sensitive information without the approval set out in the engagement letter.
