Telling the growth story is one of the 10 key steps that we work through with our clients as they prepare their business for sale, says Brian McCann, partner at MC Vanguard Corporate Finance.
The growth story is important because, firstly, it is very difficult to find a buyer prepared to pay a good price for a business that is static or declining.
Secondly, most buyers will only be prepared to pay a strong multiple of profits for a business where they believe profits will be higher in the future.
Thirdly, larger businesses are more likely to attract larger buyers who in turn are more likely to pay a better price.
The sales process starts with a search for potential buyers who are then qualified by the business owner or their advisors before being provided with an information memorandum – this is the document where the growth story is usually told.
We advise our clients to start telling their growth story much earlier than that through PR, social media, their website and marketing materials. But the best way to tell it is by winning clients from larger competitors who may also be potential buyers. This step has started many a sales process!
The area where advisors add real value is identifying and approaching the potential buyers likely to pay the highest price for your specific business. Experienced advisors who can deliver this are worth their weight in gold.
MC Vanguard Corporate Finance regularly runs seminars on both buying and selling businesses. To register your interest or to discuss preparing your business for sale, please contact Brian McCann below.