How To Represent Your Business To Buyers For Success
It is a common misconception that the hardest part of selling a business is finding buyers.
Dont get me wrong, it is a challenge to filter the real buyers from the tyre kickers, but what many business owners don’t realise is the importance of what information is provided to them and when.
First of all, its important to take the appropriate steps to protect your information against for example the eyes of a competitor. This is where a confidential form comes in to play.
But lets jump ahead a few weeks.
So your business is advertised on Australia’s top business for sale websites as it should be. Enquiries are coming in steady, and 3 buyers that have signed confidentiality forms are waiting for more information.
1 of these 3 could be your buyer. Here’s our advice on how to represent your business to make sure they move forward to make an offer:
1. Create a professional profile of your business – What you send to your buyers at this stage in the sale will be the defining factor as to whether they move forward or not. It is the only tangible representation your business has to represent the price you’re asking for. Also, the buyer is going to be looking at multiple business opportunities similar to yours, make sure yours stands out from the crowd. Make sure its something you’re are proud of.
2. Everything they need to make a decision – Provide all of the information the buyer will need to make an immediate decision in a neat, easy to read & understand document. Don’t just throw together your profit & loss, balance sheets, lease etc. The last thing the buyer wants to do is crawl through a mass of information they simply don’t need at this stage. Be clear and concise. Information about your customers, your location, your business history, details of its every day runnings are all great, but dont forget to include advice on how to make an offer on your business and the overall purchasing process. Most buyers are first time buyers, they need this advice.
Recently we had a client sign up to our Complete Service Package after having been on the market themselves for 6 months and losing a deal due to a lack of professional representation.
His name is Steve.
After a painstaking process of dealing with countless buyer’s questions, and investing $1,500 in a variety of advertising websites, Steve found a serious buyer that made an offer at his asking price.
Their solicitors finalised the terms and conditions of the contract and they were ready to sign on the dotted line.
Then the buyer discovered, for the first time, that a rental bond was required for the premises.
At this late stage in the process, buyers are looking for any red flags that might mean they’re making the wrong decision. This was enough to scare the buyer, and Steve didn’t hear from them again.
The moral of this story is that it is easy to forget just 1 or 2 points that will crop up later down the sales process, especially those that appear obvious.
These can easily knock a deal over.
Steve now has a Bonza prepared professional business profile to make sure that doesn’t happen again.
We have known clients that have paid their accountants in excess of $3,500+GST just to build their “business profile” document to represent their business when selling.
Bonza has over 40 year experience in dealing with business & franchise sales nationally.
Not only do we build your business profile document the way buyers want to read it, our Bonza Complete Package also includes over $5,000 worth of advertising power plus we handle all of the heavy lifting for your sale just as any brokering service should do. For more information, check out the package by clicking here.
You have likely invested thousands into your business over the time of your ownership, and no doubt a tonne of your time and hard work. Plan to spend just a little more to get it sold successfully.
For the absolute majority, the difference of spending a couple of thousand dollars to sell it the right way will be the difference in successfully selling it, or not.