Too many businesses fail to sell for anywhere near their true potential. Often, this is because owners decide to sell without making the necessary improvements to attract competitive offers. Without proper preparation, businesses can struggle to generate the competitive tension required to secure a great sale price.

At Strategic Transactions, we bring extensive commercial and transactional experience to partner with business owners, helping them optimise both saleability and valuation.

The Value of Proper Planning

The philosophy is simple: Better planning leads to a higher sale price and fewer restrictive buyer terms. Since the payout from a business sale is often the most significant sum an owner will receive, it makes sense to start preparing years in advance.

We use a two-part framework that underpins the total value of your business:

Strength of Business Assets that Ensure Future Profitability and Growth + Alignment with Buyers’ Motives and Strategic Fit

In this article, we’ll explore the first half of the equation: the strength of Your Business Assets. Using our Fit 4 Sale Scorecard, you can evaluate how robust your assets are and identify areas for improvement.

1. Financial Assets

Buyers look for businesses with solid financial management. This includes consistent revenue growth, profitability, and accurate forecasting. Effective financial controls, clear reporting, and transparent financial records are essential for building buyer confidence.

  • Are your financial reports well-maintained and easily accessible?
  • Do you regularly track and benchmark your performance?
  • Can you provide detailed, accurate forecasts?

2. Product Assets

A strong product portfolio can significantly enhance your business’s value. Offering a range of products or services with healthy margins, recurring revenue, and opportunities for upselling or cross-selling will appeal to buyers.

  • Do your products meet current market trends and demands?
  • Is your product ecosystem well-rounded with add-ons and upgrades?
  • Can your product offering generate stable, long-term revenue?

3. Customer Assets

Loyal customers are one of the most valuable assets a business can have. Buyers are drawn to companies with a strong customer base, recurring contracts, and high satisfaction ratings.

  • How well do you understand your customers’ needs and preferences?
  • Do you have long-term contracts or subscriptions?
  • Is your customer retention rate strong?

4. People Assets

Your workforce plays a critical role in driving growth. Businesses with motivated, capable employees and a well-defined company culture are more attractive to buyers.

  • Are key roles filled with competent, experienced professionals?
  • Do you have structured training and development programs?
  • Are your employee retention and satisfaction rates high?

5. System Assets

Efficient systems and documented processes create operational resilience and scalability. Buyers value businesses with automated systems that minimise reliance on the owner.

  • Are your core processes streamlined and well-documented?
  • Do you have contingency plans for operational risks?
  • Is your technology infrastructure modern and scalable?

6. Competitive Assets

Maintaining a competitive advantage is essential for long-term success. Businesses that adapt to market changes and continuously innovate are highly sought after.

  • Are you actively monitoring and responding to competitors?
  • Do you have a unique value proposition?
  • Can your business sustain a competitive edge?

7. Brand Assets

Your brand’s reputation and recognition contribute directly to business value. Strong market positioning, positive media presence, and a loyal customer following will enhance buyer interest.

  • Is your brand well-recognised in your industry?
  • Do you have strong community engagement and partnerships?
  • Are there any legal protections for your brand identity?

8. IP Assets

Intellectual property (IP) such as trademarks, patents, and proprietary processes provide defensibility and long-term value. Buyers prefer businesses with protected innovations and trade secrets.

  • Have you secured all necessary IP rights?
  • Are your proprietary processes documented and transferable?
  • Does your IP give you a sustainable competitive advantage?

Try Our Fit 4 Sale Scorecard

Curious about how your business stacks up? Use our complimentary and completely anonymous Fit 4 Sale Scorecard to assess your business’s strengths across these eight asset categories. It’s a practical starting point to uncover opportunities for growth and prepare your business for a successful sale.