Typically, buyers are sourced from a wider geographic area as deal size increases. The chart below illustrates this point using sales data for the second quarter of 2017. As deal size increased, the market saw fewer successful buyers within 20 miles of the seller and more buyers located beyond a 100-mile radius.
Buyer location: in miles, relative to Seller
The old notion of calling your competitor down the street may work if you’re a small business, but the bigger your business, the less that strategy makes sense. It just reinforces the notion of working with an advisor who has the proper reach to market your company to the widest possible pool and bring more buyers to the table.
If you have any questions, feel free to contact Joan Young, President of Sunbelt Business Brokers, Greater Bay Area – [email protected]. Sunbelt also handles Mergers and Acquisitions.