This is the 2nd of a 6-part series on Amplifying Company Valuation
In our previous article we reviewed how taking some key actions can significantly increase the return you receive when selling your company. We also summarized that the years right before you sell can have the biggest influence on what a buyer is willing to pay.
Today we are going to review the first step to increasing the value of your company. That step is to choose the ideal type of buyer and then build their needs into your company. At the end of this article we have included a buyer-summary that lists the types of buyers, their goals, and some additional considerations. To help you select the buyer segment that is best for you, you should begin by asking some key questions:
· Is getting the highest return your most important objective?
· Do you want to leave your employees and your company location in place?
· What is your goal for your products or services and how important is that to you?
· How long do you want to remain involved after your company is sold?
· How well can you work for someone else during the period you stay on-board?
Once you have chosen the ideal type of buyer, then you need to assess how well your company meets their specific needs and goals. If there are issues or gaps, what can you do to close those gaps? There are many strategies you could pursue but these could include focusing growth on the products/services where you have a competitive advantage, adding new geographies or customer segments, optimizing your management team, and many more.
In addition to increasing your company’s value, these steps can also make money for you while you are preparing to sell. And remember, only a few changes can have a profound impact.
In the next 4 parts of this series, we will explore the remaining steps to preparing your company to sell for a strong value. You can also find additional articles on our blog page or reach out to us to learn more.
Acquisition Buyer Segments for Small to Medium Size Companies
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