Template letter to potential sellers - is one available?
May 14, 2020
by a searcher from The University of Michigan - Stephen M. Ross School of Business in Hyderabad, Telangana, India
Hi, I am looking for one that I can use to write to potential sellers.
Also, since I am operating a business and I'll be approaching potential sellers who may/may not be competing with me, is it better for me to write directly to a seller or approach through an anonymous third party?
All advice appreciated.
from California State University, Los Angeles in Beverly Hills, CA, USA
Depending on the size of company you are approaching, they either get a ton of mail every single day, or they get filtered by a secretary. So, the initial approach of writing a letter (handwritten, or otherwise) is perhaps fruitless. They won't get to the right person. Even if they do get through, how do you know this is the right decision maker? How do you know they aren't already owned by PE? Are they even in the market? So, you'll be spending a ton of time writing, sealing, sending mails. It would be just as easy to simply call and say, "I'm following up on the letter I sent you last week", and have never sent one at all... But, don't do that - as it is a lie.
So, what do you do? Simply this: Give them a call. Get through the gatekeeper and figure out who the key decision maker is. Once you get the right person on the phone, apologize for the cold call and introduce yourself with one sentence; "Hi, I'm Joe Schmoe and I am the XYZ for ABC firm. I really like your business and would love to get better acquainted, do you mind if I come by for a tour"? You'll get a few responses:
1. No. I don't know who you are or what you do. -- Apologize.
2. No. I am not interested
3. Yes, but I'm not in the market to sell, but always good to have you meet me.
4. Yes, I'm in the market to sell
Once you meet with them, then... THEN... You not just write a letter, but send a little gift. I plan on buying a management book and giving it to them. They probably won't read it, but it'll be calling card saying, "Hey, I know what I'm doing and I'll take good care of your business".
Thats about it. Anyone think I'm nuts?
from Columbia University in London, UK
The only exception here is if you got their email or phone number from a common contact. Then there's a bit more room for a story about yourself for added credibility.