So, you have your own business and are looking to sell. First of all, you’ve done an amazing job getting to this point. Starting up your own business is not easy. You should be so proud of yourself for not only creating your own business, but creating one that is good enough to sell.
It may seem a little confusing, knowing what is needed to put your business in the best possible position for acquisition. Afterall, this is your baby, right? You want to make sure you do all you can to find the best buyer, who will support your business as it continues to thrive and see its amazing potential.
We’ve got some top pointers below for you to bear in mind to give you and your business the best potential for a successful sale.
Ensure your business is ready
Before you think about advertising your business to sell, make sure it is fully ready. If your books aren’t organised or you don’t have up to date figures or procedures, this is going to be off-putting for a potential buyer. The more organised you are, the better chance you have for a sale. A buyer will immediately want to know how to run the business. Ensuring everything is in place for them to take over will be a great selling point.
Attractive companies sell
It’s a good idea to reflect on your business and its last few years. Imagine you are on Dragon’s Den. The questions the Dragons usually ask to determine if a company is attractive to them are what you should be asking yourself. Companies that are reliable and profitable are the most attractive. A buyer will have questions if your company sales have decreased, or your figures have been unstable. If this is not the case for you, that’s great- shout from the rooftops about your stable and profitable figures. If it is, however, maybe think about working on turning your business around first before selling.
Other things to bear in mind regarding the attractiveness of your business are things such as:
How appealing is your website, your brand, or your image as a company? These are all important factors that will help make your business look like a desirable option for investors.
Networking is key
Making yourself known to potential buyers by attending industry events and functions can be a really great way to start. Buyers will often seek out their potential investments at these sorts of events, so what better place to be? Attending these functions will also strengthen your connections with other similar businesses. Who knows what doors that might open for you? After all, the saying often goes “it’s not what you know, it’s who you know”. Introductions to potential investors could happen as a result of your networking.
Make your business known
It’s really important to get your business out there. There are so many great ways to do this, including through social media, publications, frequent blog updates and speaking at industry specific events. Remember, you aren’t just selling your company, but you are also selling yourself and what you stand for. It’s therefore important to be mindful about the sort of information you choose to share through these avenues. Buyers are liking to scan through industry specific material and will focus on those which match what they are looking for. If you or your business come up as a result of their recent media search or blog read, this will put you in good stead to be noticed by buyers.
Get into your buyers mindset
If you were a buyer for a business in your field, what would you be looking for? It’s a good idea to get into the mindset of your investor and focus on the things that would appeal to them the most. What is your most valuable asset? Whatever it is you feel would be the key selling point, focus on that and try to make it as attractive as possible. The rest of your business can be explained at a later date, after you have hooked your investor with the key selling point.
Be strategic when looking for a buyer
It’s worth thinking about what your business needs from a buyer. What sort of buyer are you looking for and what type of buyer would be a good match for your business? If an investor approaches you, it’s a good idea to have in your mind whether they would be a good fit for you or not. This will ensure the best success for your business later down the line. Ask yourself questions such as “Do their visions for the business match mine?” and “Do their values match those of the business?”. Having a clear idea of the ideal investor for you could be a good way to prepare.
Yorkshire Change can help
If you’re looking to sell your business, Yorkshire Change can help. For more information on how we can help you prepare for sale, fill in the contact form on our homepage.