It is often said that perception becomes reality. Something perceived as new, young or innovative has a higher perceived value in the market. Similarly, a company for sale can see an increase or decrease in interest based on how it is perceived by buyers. The site visit by the buyer can cause them to accelerate interest in the opportunity or leave skid marks in the driveway.
Buyers aren’t looking for the smell of brand new leather chairs or the latest gadgets in every office but
Ask yourself questions such as:
- Is the office and warehouse space neat and efficiently used or does it give the feeling that things are scattered because there is too much space or cramped because there is not enough space?
- Do the employee areas have sufficient lighting and provide the feeling of being in a successful enterprise or the darkness and drabness of a business trying to survive?
- Are the phones, the computers and the office equipment relatively up to date or do they belong in the Smithsonian?
Case Study: The Dog
We were asked some time ago to assist a business owner to determine the market value of his business. We visited the office and saw inventory items going back 20 years, which were stored alongside the current inventory…and old hockey equipment, fax machines, and a very old couch.
The kicker was when we received the current financial information on green and white dot matrix printer paper!
None of these things affected the objective valuation of this company. The business filled a need,
Question #1 “What does your company do?”
Business owners are asked this question hundreds of times. Answers can be simple: “We are a machine shop,” “We distribute medical supplies,” or “We provide phone messages.”
Being a leader in your field is not only a feather in your cap, but also a key tool in the sale of your business.
Know the aspects of your business where you are the leader and exploit these differences. If you are not a leader, then becoming one in some aspect of your business will tend to have a positive impact on the sale of the company.
As professional business trainers and coaches, helping companies stand out as prime prospects for acquisition and a big return to the owners is our specialty.
Coming next month: “Brain Drain and 2nd Tier Management”
-by Greg DeSimone - Beacon Equity Advisors, Inc.