Selling a Privately Owned Business – Briefing 6 – Key Issues for Buyers
briefing in this series follows logically from our last Blog on grooming, which
is to specifically consider what are the key issues from a buyers viewpoint.
At this point you’ll have considered your
objectives, you’ve carried out some initial planning and possibly some actual grooming
of the business, but before embarking on the final decision, what factors might
be important in the market to potential buyers? From our long experience over many deals we’ve
devised an informal check list of ten key points which any buyer will look for.
- Positive trading and
profit trends and evidence of future sustainability of trading.
- No reliance on you as
- By extension, good
quality second tier or support management in place.
- Good prospects for
future growth, especially known unrealised potential.
- A stable growing and
well spread customer base.
- Good markets with
growth potential, especially if they are “niche” markets.
- That your business
has a demonstrable competitive edge, differentiation, or “USP’s”.
- Proprietary products
or services, brands, licences or patents are always attractive.
- A genuine reason for
sale, in particular that it is not a forced sale.
- No adverse external
factors outside an owner’s control.
obviously isn’t necessary to tick every one of these boxes, but the more of
these key factors your business possesses, the better chance of achieving your
objective of maximum value on the sale.
9 October 2019