After completing the Business Sellability Assessment and receiving your score on which areas of your business should be improved before offering it for sale, select the modules you want to work on:
Why: Buyers prefer businesses that are not commodities. They like intellectual property that can give them an advantage over the competition, like patents, trademarks, copyrights and trade secrets.
What: This module scores how unique and differentiated the business is compared to others in the sector.
How: It looks at intellectual property and barriers to entry.
Outcomes: The advisor helps the business owner refine its product offering and create IP and one-of-a-kind processes that prevent the business from becoming a commodity and competing solely on price.
Why: Buyers prefer businesses that are well positioned in their marketplace. They like to acquire market share. They are looking for opportunities in growing markets. They value businesses more highly that have a first-mover advantage, dominate their niche, or have locked up distribution channels.
What: This module scores how attractive the company’s market and channel positioning are likely to be to potential acquirers.
How: It looks at market share and market and competitive positioning, including branding, pricing and margins.
Outcomes: The advisor helps the business owner sharpen its market presence and competitive positioning strategy, as well as identify and develop new marketing partnerships.
Why: Customer acquisition, retention and the Net Promoter Score are the gold standard and recognized by all buyers as a key value driver.
What: This module scores customer conversion, retention, loyalty and willingness to recommend to friends and colleagues.
How: It looks at churn rates, customer satisfaction and the quality of referrals it receives from customers.
Outcomes: The advisor helps the business owner to compile and analyze key metrics, including the Net Promoter Score.
Why: Sales is the engine that drives all businesses. Buyers prefer businesses that have a mature sales system. They often look to acquire companies that can augment their own sales systems.
What: This module scores sales people, sales channels, sales compensation, and sales processes.
How: It looks at the end-to-end sales process being used by the business, including the sales funnel, and the effectiveness of each stage of the process.
Outcomes: The advisor helps the business owner to surface ways to improve its sales systems and develop new sales channels, particularly those that would increase the value to a buyer.
Why: Buyers often need the team or look to acquire companies with skills they need (acquihires).
What: This module scores the team and employee productivity, as well as company culture.
How: It looks at applicable skill sets and productivity against industry averages, wages, engagement and culture.
Outcomes: The advisor helps the business owner optimize employee productivity and satisfaction by ensuring the right people are in the right jobs, fully engaged and properly compensated.
Why: Buyers prefer businesses that are operating well. Good businesses are not run by people; they are run by good systems. Buyers like to acquire and adapt systems and processes that would augment their own systems and processes.
What: This module scores how attractive the company’s operations are likely to be to potential acquirers.
How: It looks at organizational structure, systems, processes and policies.
Outcomes: The advisor helps the business owner document and standardize its systems and processes so that they scale and will be more valuable to potential acquires.
Why: The actual financial performance of a business is usually the number 1 criteria used by buyers to assess its value. This is especially true of main street businesses, but not always a consideration when acquiring disruptive, high-growth tech companies that have no revenue.
What: This module scores actual and projected financial performance against business size and industry sector benchmarks.
How: It looks at revenue, earnings, cash flow, and margins. It also looks at owner benefit, growth rate and price-to-earnings (PE) ratios.
Outcomes: The advisor helps the business owner to create an action plan for improving financial performance over a 12-24-month period.
Why: Most businesses have various licensing requirements. Buyers prefer businesses that are in compliance with all local, state and federal regulations, and that have no outstanding compliance or legal issues.
What: This module scores how the company’s legal and regulatory issues are likely to impact interest from potential acquirers.
How: It looks at required licenses and certifications, past and pending litigation, and regulatory requirements.
Outcomes: The advisor helps the business owner head-off any potential deal-killing issues and resolve them or mitigate them in advance of listing the business for sale.
Why: Many businesses are sold with seller financing and/or with an earn out component. The closing is often just the beginning for some transactions. This module prepares the seller and buyer for a smooth transition.
What: This module scores the businesses’ performance requirements post-acquisition and ensures the seller and buyer both receive the full value bargained for.
How: It looks at post-acquisition performance requirements and generates a schedule to meet the performance. When a merger of teams will also take place, it helps to minimize culture clash.
Outcomes: The advisor helps both the seller and buyer align expectations and ensure a smooth transition.