Often as a business owner we take things about our business for granted – things like...
- our customer base
- our supplier network
- our product design
- the way our business is structured
- the make-up of our team
- relationships
- market
- financial performance
- risks associated with the business
...but knowing all these things is critical to a purchaser accepting the value of a business.
When selling a business, it's important to put yourself in the position of a buyer.
Ask yourself: 'If I was considering buying this business, what would I want – and need – to know in order to make an informed decision about the opportunity?'
How to provide the information that buyers need
At JPAbusiness we know that professional, credible information is key to a successful business sale.
We also know that, as a business owner, you know your business better than anyone else.
The challenge, when it comes to selling, is that sometimes a business owner can be a little too close to the action to objectively describe and communicate their business’s key attributes to potential purchasers.
This is where an experienced business broker or advisor can help.
A good broker will:
- leverage the owner’s knowledge of the business and their own market-based understanding of what purchasers are looking for to create a professional information package that answers a buyer’s critical questions;
- communicate the proposition in a way that will reflect the business ‘in all its glory’, while ensuring the information is accurate and not misleading.
Whether you choose to market your business yourself, or employ the services of a business broker or advisor, it is critical that you provide information to potential buyers in a credible, professional and robust way.
How poor information hurts your chances of a successful sale
A poor business profile, or information memorandum (IM), may make a buyer think:
- the business is being run unprofessionally
- they’re hiding something
- this process is going to be very costly for me as a purchaser because it will be like pulling teeth to get the right information
- this business is not worth the risk.
How to prepare a professional business profile when selling
As advisors, we understand that good information on a business opportunity is critical to a successful sale.
We have created a simple checklist to help you document the most important pieces of information when preparing to sell your business.
For more detailed advice, take a look at our free ebook: How to prepare your business for sale, which includes our Vendor Due Diligence Checklist.
Selling support
The JPAbusiness team provides a range of services for business sellers, including:
- market appraisals and valuations
- business sale preparation and marketing
- management of expression of interest process
- negotiation support and ongoing assistance up to sale completion.
For information about any of our business transaction services, contact the team at JPAbusiness for a confidential, initial discussion.
