1. BUILD MORE VALUE IN YOUR BUSINESS

There are many ways to increase the value of your business as it is today, depending on how much time you have, and the capacity for change in your company. The main way, of course, is to increase profitability.

It still needs to be stressed that if your business is more profitable, then you will receive a better offer. So first look at your margins and pricing, explore supplier relationships and see if there is more that can be done in terms of purchasing and overheads. Any marginal gain can make a significant impact when multiplied.

It is worth noting in detail the aspects that acquirers are looking for and, where possible, either tackling them head-on or preparing a compelling reasoned response. These are not universal, but most business buyers consider them very important and, in some cases, will pull out of conversations if concerns are too high.

Acquirers are looking for a strong management team who will be able to operate the business once the owners have left. They prefer a stable staff, showing a good culture and a happy workforce. They are looking for stable income, ideally growing, and as much of it as possible being repeat and secured revenue. They like a spread of customers, ideally with no single customer being more than twenty per cent of revenues. They prefer simple businesses which do one or two things well, ideally having some kind of defensible position in the market. And they need to relate to you – because even if you intend to leave, a business often adopts the character of the owner.

We help all our clients prepare for sale by discussing and tackling as much of the above as we can, contact us and let us help you get fit for sale.

2. DEMONSTRATE VALUE IN THE FIT

The second part of the equation is finding the right acquirer. You cannot expect everyone to like your company, as it probably has defining characteristics with the occasional quirk.

However we can help you find the buyer who looks at your company, understands the journey so far and sees the future potential. Better still, if they have experience in your sector, they will already be considering the synergies.

Finding that buyer, ‘the one’, is what we do for our clients. Allow us to find your match.