One could argue that you need to think about how saleable your business will be right from the outset. It’s more about having your house in order, so that, as and when you want to sell, the business is in good shape and not much polishing is required for it to be sold.
You don’t have to paint your house or put a new kitchen/bathroom in just to sell it – we do these things so as to enjoy living (and these days working) in a high-quality environment up until you want to sell. Then when it comes to marketing your house, it doesn’t take much effort to attract buyers and for an effective sale to take place.
The same principles apply for your business – investing in improvements in your business mean you and your employees have a high-quality environment to work in and contribute to every day. Isn’t an efficient, effective and attractive work environment also inspiring and creates a positive feedback loop for your business to prosper, grow and thrive?
What’s this got to do with the Information Memorandum? An Information Memorandum is a prospectus for your business when you come to selling, and shouldn’t we be thinking about what that prospectus is going to look like, how it is going to read and promote your business, well in advance of a request for it?
Indeed, one could argue as above that right from the start, you should be thinking about what you want to be putting in the prospectus. This doesn’t necessarily mean you are going to sell, but that you are trying to create an environment that is positive, effective and attractive, to you, the people that work with you and to those you do business with.
This becomes a virtuous circle, as you create first class client experience, healthy and positive employee relations and high quality processes in all departments - all contributing towards a successful, effective and growing business.
Take a look at the Information Memorandum and it will detail (amongst other things) company size and achievements, market position, product and service awards, certification. All factors that arise out of a level of excellence in a specific area or field that make your company an attractive acquisition target and more likely to attract a higher offer.
Use the Information Memorandum as a business plan and / or live exit planning template, something you seek to improve on and make enhancements to, not simply the marketing document you put together and send out as you look to cross the finish line.
Thinking of creating your own Information Memorandum? Please contact us for a demo of our Information Memorandum Creation Wizard.
Alternatively try our free valuation calculator.
