Step 3: Find Buyers
Creating a market of prospective buyers ranges from targeted outreach to completely open auctions. Thoughtfully prioritize desired attributes, then thoroughly research options.
3 Ways to Find Buyers for Your Business
There are three main approaches, each with tradeoffs:
Auction Model
Promoting the sale opportunity broadly often leads to competing bids and better price discovery, but it provides little control over buyer fit, follow-through, or post-close plans for the company. Most auction deals fall apart in diligence because the buyers aren't qualified or aligned with your goals.
Targeted Outreach
Directly contact a select few qualified buyers based on priorities around experience, temperament, leadership styles, and vision for the company's future. More certainty by sacrificing exposure. The challenge is where to find these buyers and how much time will you spend on outreach.
Hybrid Approach
Leverage business-for-sale marketplaces like Rejigg or digital investing platforms to create initial buyer interest. Then, vet respondents carefully based on values and partnership philosophy to filter options.
In our experience, and the experience of many small business owners, the hybrid approach is the most effective way to navigate this process, for two primary reasons:
Why the Hybrid Approach Works
1.You're more likely to find quality buyers
With the auction model, there's a good chance that most buyers aren't a good fit for your business. This means you're at risk for a buyer you don't like taking over your business.
2.It's much easier to find and connect with buyers
The targeted model solves some of the problems that the auction model does, but doing outreach to find buyers that are a fit can be a time sink.
These are the reasons why we built Rejigg (our version of what a perfect hybrid approach looks like): to give you the exposure of auctions with the control of targeted outreach. Once you've found the right buyer, you'll move into negotiating the deal.
Types of Business Buyers: Financial, Strategic & Owner-Operators
Each buyer type has distinct priorities:
Financial Buyers
Seek market-beating financial returns through operational improvement, growth initiatives, and multiple expansion. Subtypes include private equity funds, search funds, wealth management funds, family offices, and corporates. They'll bring capital and expertise but will have specific return expectations and timelines.
Strategic Buyers
Acquire companies to expand capabilities, outmaneuver competitors, and gain market share. They already participate in your industry as competitors, major suppliers, or key customers in your value chain and ecosystems. They often pay premiums because they see synergies, but integration can be disruptive.
Owner-Operators
Buy both the job of managing the company and the equity ownership. They will have expectations around retaining operating control and involvement post-sale. They're often the best fit for preserving company culture but may have less capital for growth.
How to Evaluate and Vet Potential Buyers
Once you've got a few target buyers in mind, you'll want to vet them carefully. Ask qualified buyers directly about their:
Target holding periods for acquisitions
Post-close changes planned for leadership and governance
Philosophies on company culture, employee treatment, and community impact
Past deals completed and those fallen through (and why)
How Rejigg Helps You Qualify Buyers
One of the things owners find most valuable about Rejigg is our buyer vetting process. We learn about each buyer's history, career background, and track record. We can also provide insight into how they've worked with other sellers on our platform, so you're not going in blind.
If a buyer has purchased small businesses in the past, see if you can get in touch with the former owners of those businesses. Ask them about their experience with the buyer. And, if you can, get referrals from former business partners or employees of the buyer. If it matters to you, figure out what kind of person they are.
Treat the buyer vetting process somewhat like hiring an employee: you want to be thorough, check references, and ask specific, difficult questions. This is your business, after all. You deserve to get the answers you want to any questions about the buyer.
Red Flags to Watch For
Unwillingness to sign NDA before receiving detailed information
Vague or evasive answers about funding sources
Pressure to move quickly without proper due diligence
History of renegotiating deals at closing
No clear operating plan or integration strategy
See Real Transactions
Curious what successful deals look like? Browse our completed transactions to see the types of businesses that have sold through Rejigg. If buyers are using SBA financing, check out our SBA loan calculator to understand their purchasing power.
Frequently Asked Questions
What are the different types of business buyers?
The three main types are: Financial buyers (private equity, search funds) seeking returns through operational improvement; Strategic buyers (competitors, suppliers) looking for synergies; and Owner-operators who want to run the business themselves.
How do I find buyers for my small business?
Options include auction models (broad exposure but less control), targeted outreach (more control but time-intensive), or hybrid approaches like Rejigg that provide exposure while letting you vet buyers carefully.
How do I vet potential buyers?
Ask about their acquisition history, holding periods, post-close plans for leadership and culture, and why past deals fell through. Check references from previous sellers they've worked with. Treat it like hiring an employee.
What are red flags when evaluating buyers?
Watch for vague funding sources, unwillingness to provide references, pressure to close quickly, excessive focus on seller financing, or resistance to transparency about their plans for the business.
What is a search fund and should I sell to one?
A search fund is an investment vehicle where an entrepreneur (the "searcher") raises capital to find and acquire a single company to run. They often make great buyers for small businesses because they're committed to operating long-term, not flipping quickly.
Will a strategic buyer pay more than a financial buyer?
Often yes. Strategic buyers may pay premiums because they see synergies: cost savings, new customers, or capabilities that make your business worth more to them than standalone. However, integration can be more disruptive to employees and culture.
How many buyers should I talk to before accepting an offer?
Talk to multiple qualified buyers to understand the market and avoid seller's remorse. Limited outreach is a common cause of regret. However, quality matters more than quantity. Focus on finding buyers aligned with your goals.
What questions should I ask potential buyers?
Key questions include: What's your typical holding period? How will you structure leadership post-close? What changes do you plan? Can you provide references from previous acquisitions? How will you treat my employees?
Find Your Ideal Buyer
Rejigg connects you with serious, pre-vetted buyers who align with your values and goals.
Get Started Selling