Presenting the Correct “Story” STEP TWO:
It is incredibly important to control the message when you are selling a business. Controlling the message means that you will, of course, highlight the company’s strengths, but you will also discuss the company’s weaknesses. Examples of company strengths: strong recent growth, blue chip customers, new customers, new investment in equipment, great management team, Examples of company weaknesses: customer concentration, residual legal issues, customer losses, reduced profitability An Information Memorandum, prepared by your investment banker, will include a tremendous amount of data. This allows prospective buyers to form thoughts on valuation. In order to make sure you receive offers that you can compare, you must make sure that every potential buyer receives the same information. PRO TIP Making sure every buyer receives the same information is very important during the sale process. We break this rule occasionally when there is a direct competitor in the potential buyer pool. In that case, we might redact customer, employee and vendor information.
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