Improve your odds

Diversify your customer base: If your business is dependent
on just one or two customers, your business won’t be attractive to prospective buyers.

Learn to let go: Buyers look favourably at businesses that have a management team in place who can run the business without the owner around.

Get rid of the fluff: A company with a strong focus around its core business and products generally tends to be more appealing to a buyer than a company going in many different directions.

Clean up your financials: If there are extensive personal or non-core expenses carried by the business its important to demonstrate how profitable the business can operate without them.

Don’t’ try and look perfect: If a business is running perfectly there is little upside for any buyer.

Justify your asking price: Prepare a comprehensive Offering Memorandum that details the rationale behind your asking price.

Make it attractive to 3rd party financers: Buyers want to leverage their money. Sellers want to cash out; any third party funds sweeten the deal for both sides. It helps to know what lenders look for when assessing a business loan.

Document your processes and procedures: If buyers understand how your business operates it reduces their perception of risk. Less risk means the lower the discount applied at valuation.

Target buyers who will pay more: Be it competitors, suppliers or customers, understanding who will benefit most from acquiring your business is critical in developing your marketing plan.

Use qualified experienced advisors: Work closely with your Accountant to ensure your financial statements accurately reflect the full return a buyer can expect and engage a licensed business broker to manage the sale process on your behalf.