In this article we discuss some of the factors involved in telling the story of your business. Telling the story of your business helps lead to a successful deal. EBIT uses a document called a Confidential Information Memorandum to tell your business story to potential buyers. This memorandum includes information about your company, financials, and an industry report. We keep this information strictly confidential.
Have a Third Party Tell Your Story
Business brokers and M&A advisors are great third parties who can help you write your story. Oftentimes, sellers don’t know what the true story of their business actually is. They are too deeply involved with the business and tend to lack the proper perspective. Some sellers have never really thought through the story of their business in the first place.
A third party can look at the story from a different perspective and help you weave your story. They can see your business as a story to be told. They can also help you control that storyline for optimal results.
Embrace the Human Element
It is very important that the business broker or M&A advisor truly understand your business. Good communication is very important. After the interview process, these professionals must accurately arrange all the relevant information. They must do this in such a way that the buyer can digest it and see the potential within the business. Through that means, a prospective buyer can understand that value and envision him or herself in the business.
Go Beyond the Financials
Business brokers and M&A advisors can work as advisors on pricing. Telling the story of your business does start with the financials and the facts. However, this is only the beginning of the process. Brokerage professionals will want to interview you to learn how to weave together your story. It is important to pull all of these elements together to make an engaging story that will ultimately inspire and motivate a buyer to buy the business.
Telling the story of your business leads to successful deals. When buyers open their minds to the story being told, they are able to envision the future potential of the business and understand why it is going to be a valuable opportunity. At the end of the day, selling a business isn’t strictly about the numbers; it is also about the people. Download our Seller’s Guide to help you work through your exit strategy plan and answer many of the questions that will arise as you securitize your business from the point of view of the buyer.