10 steps to maximise the value and saleability of your business – Step 10
Throughout our 10 blog series, we have discussed the different processes and stages recommended for you, a business owner, to take that could make your company more valuable and saleable.
This is the final step.
Step 10 – Make sure first impressions of your business are positive, professional and appealing
This is step number 10 because, ideally, you will have tackled 1 to 9 before you meet a potential buyer.
The very first impression a potential buyer has of your business is critical and it can take many forms – an Information Memorandum sent out, your website, or your first meeting.
Your company’s website, brochures, office décor, call-handling reception, your operations and your people will all influence that first impression.
A disorganised and undisciplined operation will show straight away. Likewise, a good atmosphere created by happy and engaged staff will also show straight away.
‘Window dressing’ simply will not work. A buyer will study every aspect of your operation and everything you state or imply must be verifiable. If your business has structural weaknesses, address them as best as you are able but it is important to be honest and disclose them. This will help your relationship with the buyer and build trust, reducing the chances of warranty claims later down the line.
Buyers are more concerned about unknown quantities, and their valuation will reflect the risks they perceive.
Each of these 10 steps is easy to talk about but hard to implement. They require a lot of time and effort and you may well need some outside help. However, here are five reasons why you should take every step in the 10-step plan:
- They will add value to your business.
- They will ensure you are in good shape if you are approached unexpectedly by a potential buyer.
- They are helpful if you desire to grow by acquiring other businesses.
- You will also probably discover a shorter working week and less stress, from the reduced dependency of the business on you.
- You need to if you are planning to sell, or want the option to sell at some future stage.
Whilst these 10 stages are not an exact science, they will help raise the value and saleability of your company.