Ways to Make Your Company More Appealing to a Potential Acquirer

Many businesses are in the market looking for potential acquirers. Seeking an acquirer requires some work to build up an attractive offer to potential interest parties.

It's important to know that there are a lot of thing that can be one to make a company more appealing. In this article, we'll explore some of those things, including: how to evaluate the balance sheet and increase shareholder value; what assets a company may be able to offer; and some other strategies for attracting an acquirer. 

How to manage the balance sheet

and increase shareholder value

One of the first things to do is to evaluate the balance sheet. There are a lot of companies with toxic debt, which can make a company less attractive to an acquirer. By eliminating or restructuring this toxic debt, you'll be able to get rid of the outstanding debt and be able to focus on the long-term goals for your company. Next, the business should justify how it is generating shareholder value. It is essential to look at how well the company is performing financially and forecast ways this can improve in the future. An acquirer will be looking for companies that generate shareholder value as they want to see what they're going to get in return for their investment.

Increase shareholder value

Increasing shareholder value is one of the most important things can be done to attract an acquirer.

If the objective looking for a company to buy your business, then it's important that your share price is backed by value driven factors.

This may mean reducing debt on the balance sheet and making sure your company is profitable. A strong balance sheet will also make a company more attractive to potential buyers who are interested in buying shares.

A company should also consider other ways of increasing shareholder value such as: selling off superfluous assets; reinvesting in your business; and diversifying products and services.

Assets your company may be able to offer

A company may be able to offer assets to a potential acquirer. The assets that a company may be able to offer are determined by the market and the industry, but here are some examples:

* customer base

* intellectual property

* manufacturing capabilities

* distribution channels

* brand equity

* talent pool

* customer relationships

Other strategies for attracting an acquirer

There are many other strategies for attracting an acquirer that don't involve restructuring the company.

A good strategy is to focus on customer service and making customers happy.

If a business can make it's customer base happy, they'll be willing to stick with the business even if there isn't an acquisition. On the other hand, buyers love businesses with loyal and happy customers that will add value to the business even after an acquisition.

Another strategy is to make sure the company's name and domains are available should a potential acquirer come knocking. This might mean getting rid of trademarks that might be valuable to a potential acquirer in order to avoid confusion and legal issues down the line.

Lastly, prepare for a possible acquisition by creating a list of all business assets and liabilities that would go with the company in the event of an acquisition. This includes intellectual property, customer lists, equipment, patents, copyrights - anything really! Listing everything out will show your potential acquirer that you're organized and have been thinking ahead about what would happen if things change. 

Conclusion

If you are looking to sell your business, it's important to make sure you have a strategy in place to attract a potential buyer. There are a number of things you can do, including making sure the balance sheet is in order and increasing shareholder value. Taking these steps will help make your company more appealing to a potential acquirer.