Staging your business for sale can be time-consuming but also very financially rewarding. A business that is well-prepared in advance of selling is far more likely to attain maximum value and price during the transaction. Staging a business includes a great deal of behind the scenes preparation, in addition to ensuring that the physical, tangible aspects of the business are presentable and appealing. There are 8 different areas that require attention when staging your business.
It is not uncommon for business owners to have significant crossover between their personal and professional life. When selling a business, owners should clean up personal affairs that may impact the transaction such as accessing targeted financial advice from a financial advisor or buying out minority shareholders.
Sales and Marketing
Informed, qualified buyers will be very interested in the sales and marketing aspect of the business. Having this information organized and at the ready can help to objectively educate potential buyers regarding the past, current, and projected value of the business.
Buyers are more likely to invest in a business that is operating smoothly and has documented policies and procedures in place. Improving processes and documenting aspects of daily operations helps to facilitate a smooth and successful ownership transition.
In many instances, existing employees are a key component of the reputation and success of the business. Human resources functions can help significantly to attract, onboard, and retain staff who help the business to thrive. For new owners, having various tools like job descriptions, performance management programs, contracts, and orientation manuals in place can help remove some of the stress inherent in managing staff.
Finances are one of the first aspects of a business that potential buyers review. Financial statements and records that are organized, accurate, and up to date will clearly and objectively support the value of the business. This information can also be helpful for projecting future gross and net profits.
Maintaining assets can help to make a business more valuable and more attractive to potential buyers. Assets can include things like inventory, equipment, and the facility. Since assets tend to be tangible, they provide a good opportunity for more traditional visual based staging.
Providing a potential buyer with a roadmap to success can help to generate a viable offer on the business. Evidence of planning to address factors such as upcoming capital expenditures, opportunities to increase profitability, future services, industry trends, and areas for improvement can provide a long-term vision and demonstrate the potential within the business.
Addressing outstanding corporate issues helps ensure that the new owner can assume responsibility for the business without assuming past issues such as litigation, tax liens, or judgments. Unresolved issues provide buyers with an excuse to ask for a reduction in the sale price.
Staging a business involves more than ensuring that your business is clean and presentable. The time and effort invested in behind the scenes preparation for a business sale can have a positive influence on the value and price of the business. If you would like our free comprehensive business staging checklist, contact Acuity Business Group and request it today.