How To Make Your Business More Attractive To Buyers
MergersCorp
Award Winning Global Investment Banking Firm with focus on Corporate Finance & Cross Border Mergers and Acquisitions
Every business owner who wants to sell their business has several goals. First, they want to find a buyer as quickly as possible. Secondly, they want a buyer who will pay the asking price. While many investors may be interested in buying the type of business you own, the enterprise may not be attractive enough for them. Therefore, it won’t get noticed. Keep reading to learn how to make your business more attractive to buyers.
Step 1: Demonstrate that the Business Can Run Smoothly Without You
Nobody wants to acquire a business that cannot run smoothly if the owner is not around. Imagine loyal customers abandoning the business soon after you acquire it just because the owner has moved on. To eliminate this risk and make your business more attractive, you should hire competent staff to run the business. You shouldn’t involve yourself with the day-to-day operations of the business.
Step 2: Work on Curb Appeal
A business premise that looks rundown or neglected will not attract customers or buyers. Why would someone want to spend money on a business that is poorly run? That is why you must work on improving the curb appeal of the business premise. Paint the exterior wall of the business premise and get new signage. Any broken windows must be replaced and damaged pavement fixed. The business premise should be attractive both in and out.
Step 3: Get Your Books Done by a Professional
While computer-based accounting software is helpful, you need to hire a certified public accountant to prepare books of accounts. Potential buyers will want to see the balance sheets for at least the last couple of years, profit and loss accounts, income statements, and other financial records. Therefore, you should have these statements prepared quarterly.
Step 4: Get a Professional Business Valuation
Before you can put your business on the market, you must first have it appraised by a professional. This will help you determine what the business is worth on the market. You can use this valuation to justify the asking price when you find a buyer.
Step 5: Diversify
Nobody wants to invest in a business with a single source of income. Therefore, you should think about diversifying. In addition to focusing on your main product line and customers, consider creating a new income stream. If you depend on a single customer for 15% or more of your revenue, the business may not appear attractive to buyers. To make it more attractive, market your business aggressively to attract new customers and increase your revenue.
Step 6: Change the Ownership Structure
A business that is run as a sole proprietorship is less attractive to investors than a business that operates as a company. If you own a sole proprietorship type of business, therefore, you should change the ownership structure. Most investors are risk-averse, so they prefer companies to sole proprietorship business structures.
Step 7: Minimize Your Expenses
Your balance sheet will reveal the assets and liabilities owned by the business while the profit and loss account will show the profits or losses. You want buyers to see a decent figure on the profit after tax section. Therefore, you must cut your costs.
MergersCorp M&A International can help you work on your business to make it more attractive. The company specializes in helping business owners find suitable buyers and has a presence around the world.
For more information about Investment Banking, Cross Border M&A, Buying and Selling a Business visit: https://www.mergerscorp.com
Free Business Valuation = https://www.mergerscorp.com
领英推荐
Established Businesses for Sale = https://www.mergerscorp.com/listings
Subscribe to our Official YouTube Channel: https://www.youtube.com/@mergerscorpmainternational8228
? Visit Website: https://www.mergerscorp.com/
? Follow us on LinkedIn: https://www.dhirubhai.net/company/merg...
? Like us on Facebook: https://www.facebook.com/mergerscorp/
? Follow us on Instagram: https://www.instagram.com/mergerscorp/
?Copyright: MergersCorp M&A International
Email: [email protected]