In my last post I promised some details on the response we received on some new companies we recently marketed to be sold.
We (The Woodbridge Group) use a unique “broad based marketing” approach to selling businesses. Instead of relying solely on Web advertising or industry contacts, we use a combination of traditional mailings, web ads, Wall Street Journal ads, industry journal ads and even telemarketing. We maintain confidentiality by using blind ads, only disclosing the company’s identity after the signing of a confidentiality agreement.
We recently had a few companies come on the market, and after preparing “the deal book” and a promotional video on each company, we launched the marketing campaigns, both here and in
In one case we received over 60 inquiries that were serious enough to sign a confidentiality agreement and take a look at the book (in the industry also called a Confidential Business Review or Sales Prospectus), Out of those we received six letters of intent to purchase, and last Friday (THAT Friday, the one that ended one of Wall Street’s worst weeks) we received an all-cash offer that represented a solid multiple on earnings.
We launched our marketing campaign for another business in mid September, one that is in a market that is expected to grow. This one received over 100 responses that were serious enough to sign a confidentiality agreement, and as of this week it looks like there are around five indications of interest. A very good response.
There are are buyers and there are deals happening. However it is slower. In my next entry I’ll describe a deal that was delayed because of the current economic conditions.