Buyers’ Profits can be Maximised
Story four – Financials don’t tell the whole story
I have been fortunate to swing some lovely deals, one of them I speak about now is how sometimes you can “value-add” in quite extraordinary ways.
Two mates who started a business some 15 years ago recently sold their business to a competitor. Now these two entrepreneurs had gone through some really tough times, and they had survived by being practical and pragmatic – what they didn’t realise was the body of knowledge they possessed, the experience and skills for their industry, were very pronounced.
The prospect buyers wanted the business; but they needed the two entrepreneurs. Therefore, the deal got sweeter the more the prospect purchaser “wooed” these two friends. The two people who built that business from the ground-up, received the market price on the sale, and they received excellent contracts of employment for the extended period they would be accompanying the business into its new ownership.
Recognising and leveraging non-financial assets can be the key to maximising sellers profits when exiting your business. Always remember, buyers are looking for more than just numbers — next week – looking at the assets that come with the business.
