Value of a Proprietary Sale
First, what is a Proprietary Sale? A proprietary sale occurs when a Seller sells their business directly to a Buyer without the use of an intermediary.
Many potential sales are referred directly to Red Deer Capital via our extensive business contacts and professional networks. The obvious benefit to the Seller is saving the commissions paid to an intermediary. While this is clearly a strong incentive to sell directly, there are other benefits as well.
Communicating directly with the Seller allows both Red Deer and the Seller to clearly outline their unique goals and objectives. When both parties communicate directly without the use of an intermediary, the risk of inaccurate communication or “misinformation” greatly diminishes. Also, in many cases the Seller does not want the competition to know the business is being sold and intermediaries typically go down that path first. As a result, all your competition becomes aware of your plan and this industry wide knowledge may put you in a weaker position in the marketplace.