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Business Sales : Mergers & Acquisitions : Corporate Consultancy

Beer Mergers Limited is an independent, specialist corporate advisory firm, a "boutique" operation focusing specifically on sales and acquisitions in the small business sector.

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Selling a Privately Owned Business – Briefing 6 – Key Issues for Buyers

 

Our next 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.

  1. Positive trading and profit trends and evidence of future sustainability of trading.
  2. No reliance on you as outgoing owner.
  3. By extension, good quality second tier or support management in place.
  4. Good prospects for future growth, especially known unrealised potential.
  5. A stable growing and well spread customer base.
  6. Good markets with growth potential, especially if they are “niche” markets.
  7. That your business has a demonstrable competitive edge, differentiation, or “USP’s”.
  8. Proprietary products or services, brands, licences or patents are always attractive.
  9. A genuine reason for sale, in particular that it is not a forced sale.
  10. No adverse external factors outside an owner’s control.

It 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.

Posted on by Mike Halls

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