Selling a business? Weaknesses can be a good thing!
If there’s a weakness or “flaw” in your business, it doesn’t necessarily detract from the price. In fact, argues Rob Goddard, the weakness can be used to your advantage to gain you a higher price at completion. And he provides a couple of real life examples of how weaknesses were converted to strengths.
Aside from financial performance, acquirers are looking for growth potential in a target business. It’s a key indicator of the likelihood of the business to deliver an acquirers required Return on Investment (ROI). After all they aren’t buying the past!
Some of that growth potential is going to be found in the weaker areas of your business. For SMEs it is often weaknesses in Sales and Marketing that offer the greatest opportunity for acquirers to grow the business. Read the article here.