Rotate Sales people so customers learn to talk to many people Create an environment where the customer enjoys conducting business with the company, not just one person at the company. Read more »
Steps to Grow Business
Be able to identify steps you have taken to grow the business Be able to show that you are moving the business forward, not resting on yesterday’s accomplishments Read more »
Review Expenses
Review expenses for discretionary items Expenses not necessary to operate the business are discretionary. Be able to support these items as an add-back. Read more »
Review Real Estate Leases
Review real estate leases – renew only if critical Sometimes a lease is a good thing; often it is not. Knowing which is which can be worth hundreds of thousands in a deal price. Read more »
Non-solicitation Agreements
Have Key staff sign non-solicitation agreements ~ Protect your customers, it is not most valuable asset you have. Read more »
Review Real Estate – Environmental
Review Real Estate – Clean up Environmental Issues ~ Is the property clean? Getting an environmental report can be expensive and time consuming. Start this process early if needed. Read more »
Google Yourself
Google yourself ~ Know what the internet says about you! Buyers are going to Google you – beat them to the punch Read more »
Google Your Products
Google you products – know what the internet says Be careful you do not contradict what others are saying, and that you know what is going on in your industry. Read more »
Website
Create / update your Website Be fresh and current Read more »
Bank Statements
Bank Statement - Keep in Centeral Location ~ Buyers will typically want to review bank accounts. Make this step easy and keep your statements at hand for the last few years. Read more »
international competition
3. How does international competition affect this business? Every buyer is going to think about this very basic concept in a world economy. What makes your business safe from overseas competition. Technical capabilities, low order quanity, JIT manufacturing, or some other factor that keeps clients buying from you. Read more »
Using Excess Funds
If you were 20 years younger, or had an extra $250,000, what would you do with it? This is a funny way of asking, can this business grow and if so how. Hire a salesperson, buy equipment, expand inventory, open a new location, or something else. In your opinion, what do you think would be [...] Read more »
Biggest Growth Barrier
What do you feel is the biggest growth barrier to your business? This question tells you a lot about your business and your industry. Is it money and desire or are there outside forces controlling you. The other side of this question is also important. Do these barriers help protect you from competition. Read more »
Increasing Prices
When was the last time prices were raised? Could you increase them next year? Is your business becoming a commodity? If so, what steps are you taking to protect your clients from poaching. If not, then what is stopping greater profit margins. Read more »
Customer Concentration
Do you have significant customer concentration? Business whose customers are diversified and represent less than 10% of total revenues are more valuable. If there are significant customers, are the purchase decisions being made by one person of separate people in multiple divisions? If not, grow your customers and receive more cash at closing. Read more »
Capital Expenses
What Capital expenses are needed in the business over the next five years? Being able to lay out for a buyer what is needed and when helps a buyer feel confident you understand your business and the marketplace. Further being able to expain the cost benefits of adding new equipment and where than breakeven occurs [...] Read more »
Patents, Trademarks, Licenses
Do you have any patents, trademarks, or licenses that will rec=duce competition? Being able to identify what makes customer buy from you is critical to a buyer feeling that risk is under control. Read more »
Business Leader
In what area is this business a leader? Everybody want to own a leader. Every buyer wants to be able to say to their lender, investors, managers, wife/husband, friends that the business they are buying is the leader in ____________. This pride of the buyer add value and add differentiation. Find at least one area [...] Read more »
Legislative Changes
Are there any legislative changes that may affect your company? Know this before the buyer finds out and tells you. Know what the effect is going to have on your business. It could be positive – create barriers to entry, it could increase the cost of competing with you, it could eliminate sloppy, unlicensed or [...] Read more »
Product, Service, and Location
What makes you different from competitors? Seriously, other than price, why buy from you. Product, service, location. What are the things you would say to a new potential customer. Know these items and be ready to tell a buyer clearly. Read more »
Facility, Equipment and Staff
Does your facility, equipment and/or staff have capacity for growth? If you landed a new customer tomorrow, could you handle it? What would you need to do day 1. This answer shows the buyer you have capacity to grow, which is what every buyer wants to achieve quickly upon purchasing the business. Read more »
Non-Compete Agreements
Have key staff sign non-compete agreements ~ Protect your customers, it is the most valuable asset you have. Read more »
Industry Trends
What is the industry trend? Is your industry growing or shrinking. Know what it is doing and how you fare compared to the industry, as the buyer will. That being said, even if your industry is shrinking, is this an opportunity for you or a threat? How do you take the current situation and use [...] Read more »
Your Role
Consider your role post sale What to you want your role to be post closing. Knowing what you want makes it easier to achieve. Read more »
Competitor
Consider buying competitor (1 + 1 can = 3) ~ Before you sell, think about buying, it can enhance you value dramatically. Read more »
Google Competition
Google your competition – know what the internet says Be ready for the questions Read more »
Increase revenues
Increase revenues Businesses with increasing revenues sell for more than business with steady or declining revenues Read more »
Relocation
Can this business be relocated? Should it be? There are many businesses where location is function of where the current owner lives more than for strategic business reasons. With this in mind, can more buyers and better buyer be located outside the area. Think about your competitor and merging them into your facility. How difficult [...] Read more »
Right time to sell?
Is it the right time to sell? If the business owner is driving the business forward, then selling may not be the answer, however, if the business is not advancing and the seller does not have the desire to land a new client or invest in new equipment, it is probably the right time to [...] Read more »
Lease Status
What is the status of your lease? If you are in the distribution industry, and believe merging with a competitor is good, then a short or no lease is important. In the other category – if location is critical (retail/Restaurant) then a long term lease is important. Read more »
Other Products
Are there other products that you could sell to your customer? Over the last several years our customers have suggested they wish we offered this product/service as they would have bought those too. We plan to being offering this as soon as __________ occurs. This shows growth opportunities and that is what buyers want. Read more »
Customers
Why do your customers buy from you? Customers buy from us because we offer them _______ that others just have not figured out how do as well as we can. Read more »
Business Name
Your business name – are you going to sell it? Are you comfortable selling your business name, even if the business name is similar to your family name. If not, change the business name now. Read more »
