How to Squeeze Maximum Value from your business sale
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Ease of integration and synergies with the purchaser’s business
An acquiring company will be looking for a target company that provides a strategic ‘fit’ with their own; a synergistic company that offers a complementary service offering to that offered by their own business and, once the companies become a combined entity, will increase profitability and growth.
When considering the sale of your company, it is important to assess and think creatively about the potential synergies your company might possess with prospective purchasers in order to improve the saleability of your business. The more that you can identify and emphasise these synergies, the higher the value can be driven.
Hidden value in intellectual property, patents and trademarks of your products and services
It is a common misconception, when selling a business, that the value placed on the target company is a direct reflection of the business’ tangible assets, such as the property and machinery owned. However, it is crucial, as a business owner, to recognise the value of your intangible assets such as intellectual property (IP), patents and trademarks.
This intellectual capital is not represented on financial statements but provides an insight for prospective acquirers on the expectations of your company’s future cash flow. Leveraging these ‘invisible’ assets can both make your company a more attractive acquisition opportunity and also maximise value.