Inform Magazine

IS YOUR BUSINESS AN ATTRACTIVE TARGET? HERE’S HOW TO CATCH A BUYER’S EYE

W

hich factors can make your company stand out to acquirers in the market? We explain the value drivers that will help you maximise your opportunity.

MARKET POSITION

The next area potential buyers will study is the company’s market position. What they will be looking for is that the target company is positioned strongly and has distinct advantages over its competitors. Factors within this include sustainable market share, a unique selling proposition, and the loyalty and size of the customer base.

When a buyer is interested in acquiring a company, there are several key factors they will consider to ensure they are making a solid investment with as little risk as possible. The most important of those factors is usually the financial performance of the company. At the heart of this is a strong track record of profits, ideally year-on-year, as well as revenue growth and a positive cashflow. As a business owner, you need to be able to demonstrate this through financial statements and tax returns, which a buyer will want to study in depth as part of their due diligence process. It does not only apply to the company’s past and present performance either. Buyers will also want to see forecast projections. If you are a company owner who is thinking about exiting your business, you may have some concerns about exactly what you need to do to make sure everything is ready to be presented to a potential buyer. We strongly recommend seeking the expert help of an adviser such as KBS Corporate who can ensure this process proves to be smooth and straightforward. We can showcase your company in the best light by highlighting its key value drivers.

Buyers will also look for positive online reviews and testimonials, and high customer retention rates.

Many buyers look for businesses operating within a distinct niche in the market, while companies with a strong brand are also very appealing.

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