In my last blog, I explained what the strategic value of a business is. The strategic value of a business is the extra value of a business – beyond its financial value – to a particular buyer. The problem is knowing who those buyers are and getting them to pay you, the seller, for the strategic value. A buyer recognizes that they are bringing the strategic value to your business so they don’t want to pay you for it unless they have to do so to buy the business. We use the M&A Process to get you, the seller, paid for the strategic value of your business. Here is how it works.
The first step in the process is developing a professional presentation for the buyer which will explain the features, benefits, and potential strategic value of your business to them. When we contact the buyer, we want to be sure they recognize the financial and strategic value of your business so they are willing to pay for them. You know your business very well, but the buyer does not. Some of the best buyers, such as Private Equity Groups, may look at many potential businesses to buy. They need to quickly be shown the benefits of your business so they take the time to look at it further. In most sales, we will not set a price for the business. We are dealing with buyers who will make their own determination of what the business is worth to them. Setting a price will put a cap on potential offers.
Read More
