By Brian Slipka-CEO of Sunbelt Business Advisors of Minnesota

Click here to read the original article published by Forbes

When selling a business, it can be easy to get caught up in the numbers and financials of the process. The financials of any deal are important, no doubt, but the proper approach includes communicating to potential buyers a balance between the quantitative and qualitative aspects of a business—the economic and cultural aspects, that is.

In my years of experience leading companies through various transitions, including acquisitions and sales, I have learned that a crucial aspect of putting together a successful deal from the seller’s side is developing a compelling marketing message that resonates with potential buyers.

A powerful message goes beyond the company’s financial performance. Buyers are buying the future. They are investing in the likelihood that the risk involved in buying and operating the business is low and that the business’s current financial performance is likely to continue or improve. A company’s growth story should clearly illustrate differentiating value, near-term growth opportunities, management and employees, technology and all the other qualities that make the enterprise amazing.

Here are five tactics to consider when telling a business’s story and captivating potential buyers:

1. Emphasizing Differentiation And Unique Selling Proposition

This involves identifying what sets a company apart from the rest. Does the company have innovative products, exceptional customer service, skilled employees, unique capabilities or a strong brand? Whatever a company does best must be advertised when the selling process begins.

2. Showcasing Growth Potential

Highlighting a business’s potential for future growth is a key to drawing in buyers. Every potential business buyer is thinking long-term when it comes to purchasing a company, meaning the buyer is looking for reassurance that the business will last. Therefore, to instill confidence in the growth prospects of a business, the seller should emphasize factors such as expanding market share, new product lines or marketing tactics or international expansion.

3. Conveying A Compelling Narrative

A savvy business owner will tailor a business’s narrative to the interested buyer. This means aligning the narrative with the buyer’s broader vision and strategic goals and aspirations. A compelling story that positions the business as an essential piece of the potential buyer’s puzzle will further enhance that buyer’s desire to own the company.

4. Building Credibility And Trust

Every transaction is built on trust, and business ownership transitions are no different. Providing clear, accurate information to the buyer will help ensure a smooth process. Transparency is paramount in a business transition.

5. Focusing On Synergies And Integration

Business owners can help buyers visualize their version of a business and the integration process they will go through by showcasing how the buyers’ existing assets and capabilities could mesh with the business they are looking to buy.

Telling a company’s financial story is not enough to attract the best offers from buyers. The business seller must highlight the qualities that have driven past performance and that will drive future success. Each of these five strategies brings a new layer of persuasion to the selling of a business and should be considered when trying to entice buyers.

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

About Sunbelt Business Advisors of Minnesota

The Sunbelt Business Advisors Minneapolis office is the largest office in the Sunbelt network with a staff of over 50 advisors, associates, analysts, and business development representatives. In 2021 the firm was recognized by the International Business Brokers Association as the #1 firm in the country and the first firm in history to sweep all three first-in class awards. Sunbelt provides services to business owners interested in selling their businesses, assistance with merger and acquisition activities, complimentary business value assessments, and advice to business owners seeking to maximize their life’s work when they exit. The firm provides business brokerage and mergers & acquisitions services for companies with revenues from $500,000 to $150 million. More information is available at www.sunbeltmidwest.com (<Under $5 million revenue) and www.tnma.com ($5 – $150 million in revenue).