7 Key Factors in Making Your Business Saleable
With the average New Zealand business owner now over 50, and about 40% of businesses likely to hit the market in the next decade, it is crucial to make your company stand out as valuable and saleable. Focusing on the following seven key factors will help attract buyers and maximize your reward when you sell.
Clearly Defined Mission and Plan
Have a clearly defined mission, core values, and strategic plan. Buyers favour companies with clear direction. It shows success is not just luck but the result of foresight and disciplined strategy.
Strong Financial Performance & Reporting
Keep your financial house in order. Up-to-date, clean financial statements and records (compliant with New Zealand standards) instil buyer confidence, and solid profits with stable cash flow prove the business delivers real returns.
Robust Brand Identity
Build a strong brand identity and reputation. A respected brand makes it easier for customers to find and trust you, and buyers will pay for the goodwill and name recognition that comes with it.
Effective Marketing & Digital Presence
Establish a robust digital presence. Nearly one-third of small businesses have no online presence, yet most customers search online first. A quality website, active social media, and online marketing broaden your reach and show buyers your company is tuned to today’s market.
Documented Systems & Processes
Document your systems and standard operating procedures to ensure consistent operations. This reduces reliance on any one person and makes it easier for a new owner to take over without hiccup.
Proven Profitability & Growth
Prove your profitability and growth potential. Businesses sell best when they are performing strongly and growing with steady revenues, healthy profit margins, and a credible growth plan. Buyers will pay more for stable, growing businesses.
Reduced Owner Reliance
Empower your team to reduce reliance on the owner. A company that can thrive without the owner’s daily involvement is far more attractive to buyers, who will pay a premium for businesses that run smoothly without the original owner. Make yourself replaceable by delegating key responsibilities and training others.
Some Closing Thoughts
Selling your business should reward you with a capital profit for your investment and hard work. By ensuring these seven elements are in place, you will be in a strong position to achieve that outcome. For personalised guidance on preparing your business for sale, connect with Steve Barry at SAS Business for a friendly chat. With the right preparation, you can confidently plan for a successful and profitable sale.