For small and medium businesses, sometimes the best way forward is to consider being acquired by a bigger company. In 2021, Microsoft, Alphabet, and Amazon signed more acquisition deals than during the previous decade. From Microsoft’s $69 billion acquisition of video game maker Activision Blizzard to Amazon’s $8.5 billion deal for MGM Studios, acquisition can help turn around a business.
While you may not be able to aim for a record-breaking deal as a small business, you can still, as an entrepreneur, sell your company for a significant profit. So how do you ensure you sell your business for the best price?
Make Your Business Money-Efficient
The rule number one of selling is putting yourself into the buyer’s shoes. Buyers are more likely to show an interest in your business if you can demonstrate it is equipped to save valuable operation costs. Making your business more efficient is crucial to creating a competitive entity. Business efficiency comes in a variety of shapes. However, buyers are more likely to consider the following elements favorably:
- Automated processes that save time and costs while reducing the risk of human errors
- Optimized workspace that promotes productivity
- Time-saving habits at all stages of the operations, from meeting scheduling to task delegations
Never Be Afraid to Negotiate with Buyers
Let’s be realistic first: A small business owner is unlikely to be able to negotiate acquisition prices at the height of MGM Studios. However, with dedicated skills and proper negotiation exercises, you could reach a profitable consensus with the buyer. The first lesson that every negotiator needs to master is that both parties should win. No negotiation is successful if either buyer or seller feels unhappy about the deal. Indeed, it is best to reject an offer than to accept something that doesn’t meet your needs.
It can be helpful to learn how to read the room, so you get to know whether it’s worth pushing your chance!
Raise Your Brand Awareness
When your brand is already recognized and accepted by customers, you are more likely to walk out of an acquisition deal with a substantial offer. Growing your brand awareness before putting your business up for sale can have a positive impact on its value. Indeed, 59% of customers prefer to buy from brands they already know, and almost 9 in 10 customers stay loyal to known brands that share their values. Consequently, raising your brand awareness ahead of the acquisition process will:
- Attract more customers
- Make your brand more competitive
- Retain more customers
- Position yourself on the market
A large company acquiring a small business with a big brand is more likely to retain the brand image to ensure customers stay loyal. As a small business, you can reach out to local influencer marketing, high-quality content marketing, and engaging video content to establish your brand personality and presence. A strong brand strategy can make your business more appealing to buyers, as it is a sign of good health and potential growth.
Are you ready to approach big buyers with your business? Contrary to common belief, merger and acquisition can be an integral part of business growth, ensuring a small company can receive the funding and resource it needs to expand.
Additionally, for entrepreneurs, business acquisition is a source of income. Not everyone wants to run a company; instead building a successful venture for sale can be a profitable and more manageable option!