Thursday, August 26, 2010

Business Marketability Enhancement

If growth opportunity, managed risk and strong margins are the foundation for building value enhancement strategies, then clarity, transparency and certainty are the engines which drive marketability. Business performance is clearly reported and accounted for, activities and status are transparent to the buyer, and all information portrays a level of certainty about the future. Experienced buyers know that completing acquisitions is a time-consuming and expensive exercise. Buyers will perceive greater clarity, transparency and certainty, and therefore be more motivated to engage, when the seller has:

  • Audited or reviewed financial statements (larger companies are expected to have there)
  • A business plan with a clearly defined growth path
  • An in-place sector-experienced management
  • Current market metrics and analysis

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