A lot of work goes into building a business.  Companies grow over time and accrue value based on their productivity as well as their name and market positions.  Some investors start a company with the aim of eventually selling or merging, in order to move on to other projects, while other operators may have had dream that grew into a larger than imagined result.  When an owner wishes to sell their business, both financial and emotional factors can come into play, but smart marketers learn to balance profits with personal perceptions in order to create the best position for the company to be sold.

Labor Versus Love

One of the most important points to remember when positioning a business for sale is that it needs to be attractive to the buyer.  This can mean that the company has an impressive portfolio or steady or rising returns.  It can also mean that the company is in a growth market or a physical location that makes it attractive to the buyer.  Although the owners may love the business they are selling, they still need to view the company critically and think of the way the buyer will see the venture in order to make it attractive.

Considering Readiness

A business that is in a good position to be sold is one that is in good shape and at peak performance.  If a company is in the middle of downsizing, has out of date inventory, or employees who are not performing efficiently, then changes will need to be made before a sale can occur.  Potential buyers will want documentation of financials and an overview of operational components so that they know exactly what they are getting.  An attractive presentation of the company will not only give a clear picture of worth, but will also provide definite figures to show growth and potential.

Presentation Points

Sales presentations can be as elaborate or as simple as the business owner chooses, but should still contain several major points for the buyer to become interested.

• •          Company history including size and ownership
• •          Organizational and operational structure
• •          Financial aspects
• •          Employee history
• •          Market position

Businesses which are not quite ready for sale can often be enhanced by strengthening the market position through aggressive advertising and branding.  Although the process may take a little time, a recognized name and strong show of growth can attract buyers more quickly and competitively.