As a business owner, you have undoubtedly put blood, sweat, and tears into building your company – so when it comes to the day when you wish to sell it, you won’t want to settle for less than it deserves.
However, your company requires attractive factors to be certain that the price offered by an investor matches the quality of the business.
But what exactly will make your business stand out from the rest? Here, we delve into some touches to consider making your company more appealing to buyers.
Broaden your customer base
While you may be comfortable with the clients you have – perhaps they’re contributing to a large proportion of your sales – it’s sensible to broaden your customer base. Relying too much on your clients can put you in danger. For example, if they’re accounting for a large proportion of your revenue, your business could suffer a huge loss.
With a diverse range of customers, investors looking for a business for sale are much more likely to be attracted to yours than one without. If a client decides to call it quits, you won’t lose significant value due to them being one of many. Broadening your client base can be done with several tactics, from social media advertisements, increasing your network, and even requesting feedback from current customers to find out how you can improve your service.
Consider an exit plan
Having a plan for when you decide to leave your company behind may not be the first thought that crosses your mind, but it can make your business more appealing to buyers. Many leaders will sell businesses, but not all will have an exit strategy to ensure that the transition to a new owner is as smooth as possible – thus, you will stand out from others.
Whether you opt for merger and acquisition to have your business merged with or acquired by another company or selling your control if a partner is buying the business, there are several routes to follow that ultimately depend on your needs as a business owner. Whatever they may be, an exit allows you to implement any necessary steps to minimise any difficulties for the new ownership, such as training.
Don’t neglect your team
A well-trained and valuable team is one of the many attractive factors your business can boast to buyers. Neglecting the staff limits their potential, meaning you miss a trick when it comes to appealing to investors.
Looking after your team can be anything from regular catch-ups to training. Catching up can identify any areas your staff are struggling with, allowing you to take action for them to learn new knowledge of your business’ industry and even upskill. With an insight into any recent advancements, changes in your business can be implemented to improve the way of working, which can ensure that the team is committed to staying in business once you leave. After all, if a buyer has their eye on your staff, you want to do all you can to ensure that they will stay once a new manager takes over.
Keep track of your financial records
Not only is it a sensible idea to keep track of your financial records for the sake of your company, but it will also be something that prospective buyers will consider when buying a business. While you may be concerned about losses, it’s always better to be transparent and show your financial history.
Typically, buyers will be interested in seeing between two to three years of your business’ profit and loss statements. If you’re not fully confident in gathering the reports yourself, you can always opt for a professional who will perform an audit of your financial statements to give buyers clarity of your documents as well as proving a balance sheet.
There are several ways you can make your business more attractive to buyers in preparation for selling. Considering these will not only help you find an offer that matches your business’s worth, but it will also make the process a lot less stressful as you await a buyer.
