Anyone looking to sell their company to a third party knows that the first step in sales readiness is to examine the market, but what happens after that?
Simple. This is the point where you will need to factor in competitors, potential buyers, industry acquisition activity, and your own competitive advantage.
Advisors will want to look into the insights you have on your competitors, and if any might be interested in buying your company. A helpful hint during this process is to also have your sales team know how your company measures up to applicable industry standards. Listing competitors, vendors, and others outside of the company who you think could potentially benefit from buying your business is incredibly valuable. By conducting an analysis on all of this, you will aid in receiving a higher selling price from strategic buyers.
Understanding your own company’s competitive advantage is key to a successful sale. Take a step back and ask yourself the following questions. Do you know why customers buy from you instead of from your competitors? Have you thought about developing and verbalizing your competitive advantage? What about how to better position your company to appeal to buyers? Owners who know why their customers prefer their business can have an enormous advantage when it comes to bargaining. Knowing exactly what makes your company better gives you a better ability to negotiate a superior price.