It takes blood, sweat and tears to build a successful business today. When it comes to selling an enterprise, every entrepreneur wants to get full value for their investment. However, it’s important to appreciate that a sale doesn’t happen overnight. It’s not an event but rather a process.
You require a workable exit strategy for a smooth transition. Unfortunately, most sellers overlook exit planning and this diminishes the chances of a successful deal. Our exit solutions come in handy at this point. We help you at every stage of the process from initial discovery, valuation of a company, designing an exit plan and closing the deal.
The good news is that the business sale market is hot, with an increase in closed deals recently. If you are thinking of selling your business, here are some strategies we recommend to make it more attractive to buyers.
1. Optimize Metrics and Reporting
You need accurate data to make the right decisions. A good start is to tighten your metrics and reporting to get a clear picture of the financial health of your enterprise. Make sure you have accurate and easy to understand data that buyers can easily digest.
2. First Impressions
Whether you own a brick and mortar store or an online enterprise, first impressions are everything. Curb appeal matters for your store and you may need to invest in renovations. For your website, work on the site’s layout, speed, architecture, landing page, and all other sections. Sprucing up your business can make all the difference.
3. Prepare for Succession
A business operation that’s so dependent on one key person is at a high risk of failure. It’s an unattractive investment because much of the success is tied to your presence or input. To make it more appealing, you need to put a succession plan in place. Our exit team works with you to review different succession options for business management.
4. Create Policies and Procedures
Buyers want a business they can easily understand, and this is why you need a manual for virtually everything. Create policies and internal procedures, clear and concise job descriptions and guidelines for other operations. Buyers like such operation as they are less stressful to continue running.
5. Refine Marketing And Sales
Now that you want to sell your enterprise don’t relax in your marketing campaigns. We advise our clients to double down on their marketing efforts. Make sure you have current campaigns that generate decent returns. With current metrics and reporting, your business should offer proof of its success.
6. Ensure Compliance
Take time to review all industry and legal standards and ensure compliance. Staying up-to-date with regulations, relevant safety codes, lease contracts, insurance, and other requirements gives potential buyers to invest.
7. Develop and Build Your Email List
Email remains a powerful business marketing tool. An email list can turn into the most valuable asset during a sale. A good case in point is the sale of Hautelook for $270 million. The site’s email list pushed the price tag this high.
These are just a few of the strategies we recommend for our clients who want to sell their businesses. Get in touch for more in-depth and tailored exit consultations. We have the best exit tools to help you make the right call.