All right, so now you have a list of prospects. It’s time to get in touch with the current owners to see if they’re interested in selling.
Your first contact with the prospective business seller is through a personal business letter. Do not deviate from acceptable business decorum in approaching prospective sellers. Although experienced buyers can often telephone prospects directly and make the right impression, we strongly recommend that you “two-step it” with an initial contact better followed up by a phone call.

The letters should be short, direct, and to the point. They should clearly indicate the next action you will take.

Don’t try to get fancy. This is not an opportunity to show off your extensive vocabulary or your creative writing skills. The idea is very straightforward: “I’m interested in the possibility of buying your business. I’m financially and professionally qualified to do so. If you’d like to explore the issue, let’s talk. I’ll cal you to get your answer.” That’s it. This is a case where less is most definitely more.

The construction of your letter is critical. As in any business situation, packaging is important to convey the right message. When the prospect reads your letter, she should be thinking, “This person is professional, informed, and businesslike. I’d like to meet her.” Your letter should demonstrate the results of your research. The more you are seen as a professional who knows the industry, the more credibility you will have.

You need to do two things. First, type your letter on high-quality stationery with absolutely no typos. Second, construct a brief but powerful statement of precisely what you want. Remember, the purpose of your letter is to get the owner to say yes to a meeting, not to explain why you want to go into business for your self. Keep it short, give it punch, and target it to your objective.

Call the company and check the name and address of your prospect. If the receptionist asks you why you want this information, say that you are sending some material to him or her and you just want to verify the address. Don’t ever give more information than that. One more thing, and this is important! On the envelope write PERSONAL. You don’t want company employees opening your letter.

Figures 3a and 3b should help you construct your own letters.

Figure 3a. Sample letter to business owner.

Ms. Lucy Piper
President
Piper Consulting
237 Winchester Court

Dear Ms. Piper,

I’m an experienced management consultant with broad credentials and long experience. My current objective is to purchase a consulting firm like yours. My initial research indicates that your company may be just what I’ve been looking for.

I realize you may have no interest in selling. However, if it has ever crossed your mind, it might be worthwhile to explore the possibilities. I’ll take the liberty of calling early next week to chat with you.

Cordially,

Charles Ackers

Figure 3b. Sample letter to business owner.

J. D. Wing
President
SBB Pump Inc.
2 Third Street
Detroit, MI 93215

Dear Mr. Wing,

I’ve been following the growth of your company for the last few years. You’ve certainly done well. Currently I’m in the market to buy a business in the pump manufacturing industry.

I’ve spent twenty-five years in the business, primarily in manufacturing management and sales. Through the grapevine, I’ve heard of your plans to move to Florida. You’ve certainly earned the privilege.

I would very much like to sit down with you and explore the possibility of a buyout. I’ll be in touch with you in a few days.

Sincerely,

Harold Heath