We’re operating in a business buyer’s market. This means vendors who are keen to sell their business must be prepared to do some legwork to find the right buyer and achieve the most profitable outcome. Identifying untapped business potential and possibilities for future growth is one tactic vendors are using to achieve a higher valuation and attract prospective buyers.
Identifying growth opportunities is not about creating additional work for your leadership team. You don’t have to create and execute a business development strategy in order to sell your business. The seed of an idea, a customer commitment, or detailed research could be enough to add significant value to your business in the eyes of a buyer.
Buyers are looking for strategies that will lead to sustainable business growth. If you plan to sell and exit your business this year, researching what that growth could look like is a good place to start.
Buyers perceive value in opportunities to scale a business, so keep this in mind as you carry out your research.
Consider existing customer feedback as a primary source of information about customer needs and wants. Analyse online reviews and feedback on social media for hints of challenges and problems customers would like your business to solve. For example, travellers tend to be very honest in their review of a hotel or accommodation, pointing out where their needs have not been met, which could highlight untapped potential.
Would your customers be responsive to a feedback survey (not all are)? If so, carefully worded questions could generate valuable suggestions for future products and services. And, if you change your mindset and look at customer complaints as an opportunity rather than a threat, they can be a goldmine for feedback.
If you sell online, take a look at your website analytics and identify which products/services are popular and not so popular. Which products or services are people searching for on your website, but perhaps not finding? Review other sales channels to understand whether there is potential to expand or enhance your product/service mix for your customer base.
Evolving markets can be a source of new opportunities. Stay flexible so your business is ready to respond to change.
We all have plans that we have shelved because we realised our team didn’t have the skill set or knowledge to deliver. Resurrecting these as part of your growth strategy could be attractive to a buyer who does.
Have an open conversation about your plans and float the idea of developing a long-term partnership – which may even become the source of new ownership.
Part of a broker’s role is to help vendors achieve the most profitable sale price for their business. If our initial valuation doesn’t match with yours, we can work with you to identify ways to increase value from the perspective of a buyer. Find your local business broker and ask how we can help.
Beyond current performance, buyers are looking for clear ways to scale the business, such as:
Clear gaps in the market: responses to customer challenges and pain points that may emerge from your research.
New untapped markets: look at market trends your competitors might already be exploiting and get yourself a piece of the pie. Expanding into overseas markets may also generate higher demand and profit.
New product lines: think complementary products and services, add-ons, upgrades and diversification to spread risk.
Digital upgrades: in software and systems may improve flexibility and responsiveness, and generate higher return on investment.
Subscription models: highly valued by buyers, avenues to generate regular income are sought after on the business sales market.
When you sell a residential or commercial property, one sure-fire way to increase its market value is to apply for planning permission to extend. There are several ways you can highlight potential business growth to buyers in a similar way.
Even if, under current ownership, you have no plans to pursue growth, identifying viable expansion paths and creating plans to highlight the business’s potential may justify a higher asking price.
Having determined the areas where a new owner may seek to scale the business, create a strategy documenting your ideas, research and potential for growth. Include agreements in principle with significant customers or suppliers, and evidence of predicted return on investment. Hand this to interested buyers to create interest, impress and excite them about the possibility of owning a company with scalable prospects.
To add value your business and achieve the most profitable sale price, follow our three steps:
Consult a Business Partnership broker to explore and identify untapped potential buyers find attractive. Complete our contact form to arrange a conversation.
Business Partnership is delighted to announce a new strategic partnership with The Value Builder System™, a leading global methodology for assessing and improving the value of privately owned businesses. This collaboration brings together Business Partnership’s proven expertise in business sales, valuations, and exit planning with The Value Builder System’s evidence-based approach to helping owners increasing the value of their companies ahead of sale or succession.
Through this partnership, Business Partnership’s clients will benefit from The Value Builder System’s eight key drivers of value, providing a clear, structured process to increase attractiveness to buyers and deliver stronger outcomes at exit. With seven Accredited Value Guides across the UK, our nationwide team is uniquely placed to combine local market knowledge with a globally recognised framework.
Paul Dodgshon, Managing Director and Accredited Value GuideTM commented:
Business Partnership’s mission has always been to help business owners secure the best possible result when selling. This partnership strengthens that mission by giving us a proven, consistent, and highly practical approach that works in any sector.
John Warrillow, Founder of The Value Builder SystemTM and Built To Sell explains:
At the core of The Value Builder SystemTM is a simple but powerful principle: businesses that are designed to run without their owners, built around repeatable systems, not singular personalities, are the ones that truly deliver value. Partnering with Business Partnership means more UK business owners can access this framework through advisors who understand both the local market and the real drivers of long-term value. In this partnership we can give owners the clarity, resilience, and details the choices they need to make to deliver the best possible outcome when it’s time to move on.
This alliance reflects both organisations’ shared commitment to providing business owners with trusted, transparent, and results-driven advice ensuring they can plan their next chapter with confidence.
Geoff Kwateng, Partner, Guilford Office and Accredited Value GuideTM further commented:
The Value Builder framework gives our clients real clarity. It identifies exactly where their business excels, where it needs attention, and how to make it more valuable in the eyes of a buyer.
Business Partnership is one of the UK’s most experienced independent business broker. Our nationwide network of Regional Partners gives us real presence on the ground, reaching locations others don’t. This local knowledge, backed by partner insight means we deliver trusted advice and proven results. Find your Accredited Value GuidesTM here.
The Value Builder SystemTM is a scientifically proven methodology that helps you increase the value of your business by focusing on the 8 key drivers that are proven to impact the value of your company. This system offers an assessment to baseline the sellability of a business and provides a framework to improve its value, ultimately creating a more resilient and profitable company. Find our more here.
Whether you’re selling, buying, or planning for the future, Business Partnership is here to help. Contact us today to speak with your local Regional Partner and start your journey toward success.