Selling your company is not the same as running it. To sell your business for its actual value, you must understand the mind of the buyer.
A buyer has a checklist that he uses to measure whether your company is a viable investment. The buyer's perspective is objective, data-driven, and analytical.
First-time sellers are vulnerable to being taken advantage of by sophisticated buyers. When the seller doesn't understand what a buyer looks for inside a company, the buyer will devalue, degrade, and discount the company and the final sales price.
Even as a first-time seller, you can learn what buyers look for in five crucial areas inside your business. It's called the Growth to Exit® process.
When you look at your business from a buyer's perspective, these five areas are critical:
The Bottom Line
When a buyer or investor is interested in your company, he has a checklist to determine whether he should move forward. Is there a potential for growth in the market? What inefficiencies exist within the company that limits its growth? Are the right people, systems, and processes in place to expand the company in the marketplace? Is growth sustainable?
These are just some of the questions the buyer is trying to answer when considering your company as a new acquisition. You may not have control over the marketplace, but you do have control over how efficiently and smoothly your company operates inside that marketplace. When you shift your perspective to a buyer's mindset, you will discover your company's weak areas that can be upgraded before a buyer ever steps into the picture.
You regain control over the selling process, and you become confident in your company's actual value. The price competition occurs on a level playing field, and the outcome becomes more aligned with your goals.
To learn more about creating a strategic exit plan, please visit GrowthtoExit.com. Over 12 weeks, we teach you what a buyer looks for inside a company and the steps you can take to ensure the buyer likes what they see.
Your company is the product. Growth to Exit® is the process. The buyer is your customer.
THIS INFORMATION IS FOR GENERAL INFORMATION ONLY. IT SHOULD NOT BE CONSIDERED LEGAL ADVICE AND DOES NOT NECESSARILY REFLECT THE OPINIONS OF TSG PUBLISHING. YOU SHOULD NOT ACT ON INFORMATION RECEIVED FROM GROWTH TO EXIT® WITHOUT FIRST SEEKING ADVICE FROM YOUR LEGAL COUNSEL.