Optimizing the Market Value of Your Business, Page 2

Present It like a Business

In order for an acquisition prospect to determine their level of interest and to make an assessment of value, they will review whatever information is provided to them pertaining to the business. The benefits of complete, accurate and well documented information will enhance the value of your business in numerous ways:

1. Reduced risk usually justifies a greater value. If the acquiring party knows in great detail what they are getting there should be less perceived risk involved in the acquisition.
2. You increase the likelihood of finding the right match - a buyer who truly wants the business you are offering for sale. Higher demand usually equals higher value.
3. The simple fact that the business is well organized will generally enhance perceived value.
4. "Time is of the essence." Even after the parties reach initial agreement, transactions run the risk of not being successfully completed. The more arduous, time consuming and complicated the Due Diligence period the less chance the deal has of making it. If your information is well prepared the Due Diligence process will go more smoothly.
5. You virtually eliminate the element of expensive post-closing litigation due to confusion about the nature of what is being conveyed because you have accurately portrayed the business.

It pays to be well prepared. And even if you don't sell, you're likely to be more efficient and profitable by virtue of being organized and informed.