By Clearvue Business Brokers
February 16, 2021
A little preparation can go a long way in creating initial interest in your business. Addressing a few items now can help you attract more and better offers. This doesn’t always have to do with growing your sales or reducing your costs. Two items specifically can have a big impact with just a small amount of effort.
CLEAR AND TRANSPARENT FINANCIALS
A potential buyer wants to see clean financials which truly reflect the activity of the business. Transparent financial statements speak to the overall legitimacy and stability of the company. It can be a frustration or even a red flag to any interested party to see expense items that require a lot of explaining. Start now to correctly and descriptively expense items in a clear way. Most importantly, only expense items that are truly expenses. Make the correct journal entries to keep owner’s personal expenses off the company books.
Seeing clean financials is important to bringing the buyer to the table with an offer. The benefits don’t stop there. Due diligence will progress much smoother as well. A small investment in having a certified public accountant help in this will return many times the cost. Ideally, preparing clean and transparent financials should be practiced already, or at least addressed early when preparing a business for sale. However, if work still needs to be done in this area, now is the time to get a clean set of financials that are transparent for a buyer’s review.
PAY ATTENTION TO YOUR WEBSITE
A well-designed and impressive website represents the company as a whole. If the website is part of the marketing program of the company, this will surely already be in place. If, however, the website is informational it should still receive due care. It shows the care that goes into the image of the company. It also illustrates how attention is carefully given to every aspect of the company. Most importantly, it makes an impression on potential buyers. First impressions are important in products and services, and even in evaluating businesses for sale.
From a very practical point of view, most potential business buyers have growth objectives for the acquisition. In today’s world, growth opportunities exist for almost any business through effective, targeted internet marketing, of which the website is the foundation. The business buyer can then easily and quickly initiate their growth plan after acquisition when they receive an effective, professional, and functioning website with the purchase of the business.
Making these improvements will take very little effort, especially in accounting and transparent financial statements. Website updating and improvement is also a minimal cost when compared to the potential benefit. Stepping back and making an effort to see your business as a potential buyer will see it can be very beneficial in deciding where to spend a little more time and effort. When it comes time to find a buyer for your business these improvements will have an impact.