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The Importance of a Growth Story When Selling Your Business

The Importance of a Growth Story When Selling Your Business

Selling your business at maximum value requires more than the standard housekeeping of providing historical financial information and addressing the buyer’s due diligence requests. It also requires a focus on your company’s next chapter, showing buyers how company performance can reach the next level with the additional resources that come out of an acquisition or partnership.

The buyer who often pays the highest price is the one who sees the most growth potential from the acquisition. Because of that, efficiently articulating your company’s growth opportunities is critical to maximizing value, even for companies that have not traditionally focused on growth or do not have any immediate plans to pursue growth.

Often overlooked are growth opportunities that the current owner may not be inclined to pursue but a new owner may seriously consider (and be willing to fund), such as:

Highlighting Growth Opportunities when Selling Your Business

- Expansion into new products, services, or geographical markets
- Growth in existing products, services, and markets requiring additional key hires
- Acquisitions to consolidate fragmented industries, realize synergies, or add new capabilities
Substantiating the Story

It is one thing to list several growth opportunities. Even more effective, is illustrating the financial impact of such opportunities to help a buyer translate the opportunities into an increased purchase price. Putting “meat on the bones” of growth opportunities with financial estimates, even if just indicative and preliminary, will help force the discussion on what it all means for the purchase price.

Capital West Partners has been communicating our clients’ compelling growth stories for over 30 years as we help Western Canadian business owners navigate a business sale. As an experienced, independent M&A advisor with a comprehensive range of services, we have an unmatched track record of successful transactions across a range of industries. We do not provide audit, tax, or lending services, so there is no risk of us being in a conflict situation with potential buyers who regularly seek these services. If you are considering a sale of your business or want to learn more about the process, please contact us.

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