When someone like investment professional Mark Leder is looking to purchase your company, he needs to have a clear understanding of why you think your company is worth the amount you are requesting for the purchase. The clearer he understands this, the more prepared he will be to give a quality response. Selling your business will mean close examination and analysis of the inner workings of your company so you need to be prepared. Here is a list of items to focus on to make sure you get great buyer interest and that the sale happens smoothly.
Make a list of you key financial liabilities
One key part of your company that will draw attention is what your business owes and to whom. These key liabilities give potential buyers a good look into where things really are at the moment of a sale and what financial obligations need to be met and on what terms. It is advisable to make a clear list of these liabilities and state how you meet these obligations or if additional capital is required. Also if there is any negative information around based on your company not meeting a financial obligation, you need to make the buyer aware of this. This negative information could have a harmful impact on the business and as a result the value of it. So make sure you are aware of any negative information being circulated and inform a buyer about it and discuss strategies to do away with or suppress it.
Don’t hide any problems with the business
Being forthright about all aspects of your business will get you on a buyer’s good side. Too often buyers have to play ‘Whack a Mole’ trying to locate anything negative about a company and if they locate it they quickly turn away, partially because of the problem and partially because the business owner was not forthright. Remember when someone says they want to look at purchasing your business they expect ethics and a trustworthy seller. If there are issues that may torpedo a transaction, a seller is not served by hiding it. Any substantial issue will always come to the surface and when it does it will be indefensible and nine times out of ten be deal killer. So be proactive and put your cards on the table. It will show honesty and integrity to buyers.
Present a plan for the growth of the business
The primary reason a buyer will want to purchase your business is because he believes that there is great potential for growth or at least maintaining the success you are currently having. The buyer also wants to know that he can in fact take over the business and win. So putting together a plan to keep things going at a high level or increasing growth is a great idea. This new phase of growth should be much more than you can currently achieve because with the new capital a purchaser will bring, there will be additional things the business can do. So write a detailed and well thought through plan of action that begins the first day of the new buyer’s take over. Sit down with the buyer and go over every detail, talking through how the plan would be executed. Be sure to include factors that will impact the new growth and current and future conditions in the industry that will impact the company’s success.
Selling a business is a process that takes patience and perseverance. Focus on these key areas for a sure sale of your business.