What exactly will make your business stand out from the rest? Below are some points to consider in making your company more appealing to buyers.
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. Investors are more likely to be attracted to a business with a diverse range of customers than one without. Broadening your client base can be done with several tactics, from social media advertisements to increasing your network, and even requesting feedback from current customers to find out how you can improve your service.
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, 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 minimize any difficulties for the new ownership, such as training.
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 consider. 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.
A well-trained and valuable team is another factor 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. 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. You want to do all you can to ensure that they will stay once a new manager takes over.
About the Author: Hilton Smythe is a business advisory firm headquartered in the United Kingdom that specializes in mergers & acquisitions, business valuations and other services.
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