There are some new trends emerging in the M&A market as of late – unsolicited offers, for example. But no matter how things change, there is one guiding principle to the sale of your business: for someone to buy your business, they have to see the value.
This isn’t an abstract, diamond-in-the-rough kind of value, though. The value prospective buyers are looking for has to include tangible, factual information. Without it, they’re not likely to see the benefit of acquiring your business. Make sure to demonstrate value in a quantifiable manner.
That being said, not every prospective buyer looks for value in the same places.
Finding The Right Fit
Some buyers will choose to buy based on financial value. If they see opportunities for sustainable financial growth, they will seriously consider striking a deal. Other buyers, however, will see more value in strategic opportunity. If buying your business suits their specific strategy, that becomes a major motivational force for these prospective buyers. The major common thread between them is that every prospective buyer is looking for just the right fit.
Major hesitations for prospective buyers stem from this concept of just right. If they don’t perceive enough growth from your business, they may forego the sale. But, on the other hand, they may hesitate on a sale if they believe the business’ growth is too large and therefore unsustainable. A healthy in-between will often result in an offer – but it’s difficult to forecast.
Ultimately, prospective buyers will invest in a business that is a good fit for them. One of the best ways to help this process is through proper business valuation. If you know what your business has to offer, you can present that value to buyers likely to show interest. A qualified business broker is aware of all of these nuances, and can help you navigate the process of business valuation and sale of your business.
Want to know more about our business valuation process? Click here.