You’ve been doing it all your life and now it is time to sell. So, what exactly are you selling? What will a buyer want? If you don’t know you will get a big surprise when it comes to negotiation.
Let’s look at each of the six options in more detail:
- The Technology. Your company will have amassed technology – it may be trade secrets, patents, copyrights, knowhow, processes, systems, etc. Your technology allows your company to solve a problem better than anyone else.
- The People. You and the employees of your company will have a variety of expertise and knowledge and this has value to a buyer. However, the deal may depend upon locking the people into the new company.
- An Income Stream. Your products may provide an income stream – just by sales or through subscriptions that are locked in with long term contracts.
- Customer List. Building relationships with customers and industry leaders takes time – buying a company with connections may save a prospect time, money and energy.
- Being a well-known central point for information or technology to solve a problem has a value to anyone selling products or services to the same target market.
- The company may own buildings, machinery, work in progress, stock etc. which all has a value.
There is often no clear demarcation between these aspects during the sales process so it is important this is discovered while the final price is being negotiated. If you and the buyer match on all six, you’re onto a winner.