11 Things Buyers Look for in a Business

Use these 11 points as a checklist to get your business sale-ready for the best possible deal when the time comes.

1. Quality Products / Services

Quality products and services are a hygiene factor when selling your business. Some of the questions buyers will consider when evaluating your product quality are:

• Does it solve a problem?

• Is it easy to use?

• Is it efficient?

• What is the durability and lifespan?

• Is it reliable?

• Does it have a positive reputation/brand image?

2. Own Intellectual Property

Buyers will look at whether a business owns its intellectual property, for example, software systems, the business model framework, and products and services developed by the company.

3. More Than One Geographic Market

If your business operates in more than one geographic market, it reduces concentration risk and makes it more attractive to a potential buyer. For example, a South African manufacturer that sells in South Africa and sub-Saharan Africa brings comfort that should something unfavourable happens in one geography, there are other markets to which they can sell their products and services.

4. Employee Quality and Skills

Most of the time, an investor backs a team. They want quality people who have been there long with solid experience and can be part of the growth trajectory.

5. Succession Planning

Have you got a plan on how your business will move forward when you're no longer there, or does your company's sustainability rely on you at the helm? Succession doesn't have to be in place, but having a plan is advantageous.

6. Absence of Customer or Supplier Concentration Risk