Business Investment Ready is extremely important to every business, as you may need a bank loan, new investment in exchange for equity, short or long term funding to help growth – so get ready for it now and constantly.
Building a business takes hard work and skill, so what makes your business more attractive to one investment organisation or person than another? The ‘potential investor’ can be another competitor business, a new entrant to your home market, a private investor, your bank (which may be lending you a large capital amount), a private equity or venture capitalist business, plus many more.
Remember investors buyers may be looking at several potential investments simultaneously, so the one they choose may not be the one with the greatest growth potential and exponential projected earnings growth, but the opportunity with the lowest risk.
So to ensure your business is ‘investment ready’ at the right price the 3 questions that need answers are:
- How well documented are the company’s operations, and how up to date is the company’s technology?
- What most small business owners hate is paperwork. However, during the due diligence, buyers will ask you to provide written evidence that the company’s continuity can be maintained even if management changes.
- What is the company’s exposure to market shifts?
Do not become complacent and let your business become dependent on a single source of significant revenue. This issue cannot be over stressed – always look for new business and new opportunities
Does the company have a developed management team?
Finally, perhaps the area that buyers will focus the most attention on is how dependent the business is on the current owner and management team.
If you need more information or have any queries please feel free to contact us with the details below or fill out our enquiry form or call now for a free confidential consultation on +44 (0) 203 6374212 or click here to call us!