Louisville, KY (PRWEB) February 16, 2012
When selling a business, it’s often the unique attributes of a company that make it more attractive and valuable to a buyer than their other options. American Fortune Mergers & Acquisitions CEO, Brian Mazar, releases his list of unique company attributes that give a seller the “wow” factor. Certainly, the numbers are important, but potential buyers will look beyond them. Factors that make a company special or unique can not only make the difference in a possible sale or merger, but can also dramatically increase business value and marketability. When selling a business, use this list to highlight competitive advantages.
1. Brand Name Or Identity
Do any products have a well recognizable name? It doesn't have to be Kleenex or Coke, but a name that may be well known in a specific geographic region or a name that is identified with a specific product can boost purchase interest. A product with a unique appearance, taste, or image is also a big plus. For example, Cape Cod Potato Chips have a unique regional identity along with a distinctive taste. Both factors are big pluses when it comes time to sell a business.
2. Dominant Market Position
A company doesn't have to be a Fortune 500 firm to have a dominant position in the market place. Being the major player in a niche market is also a dominant position. Business buyers, such as buy-out groups, look to the major players in a particular industry regardless of how small it is.
3. Intangible Assets
A long and favorable lease (assuming it can be transferred to a new owner) can be a big plus for a retail business. A recognizable franchise name can also be a big plus. Examples of other valuable intangible assets include: customer lists, proprietary software, an effective advertising program, etc.
4. Price Advantage
The ability to charge less for similar products is a unique factor. For example, Wal-Mart has built an empire on the ability to provide products at a very low price. Some companies do this by building alliances with designers or manufacturers. In some cases, these alliances develop into partnerships so that a lower price can be offered. Most companies are not in Wal-Mart's category, but the same relationships can be built to create low costs and subsequent price advantages.
5. Difficulty Of Replication
A company that produces a product or service that cannot be easily replicated has an advantage over other firms. For example, anyone can say they do accounting work but only CPAs have the appropriate licensing for that field. This gives them an advantage when consumers choose who to take tax matter to. Another example would be companies that have exclusive government licensing agreements or agreements that are granted on a very limited basis. Others provide tie-ins that limit others from competing. For example, a coffee company that provides free coffee makers with the use of their coffee.
6. Proprietary Technology
Technology, trade secrets, specialized applications, confidentiality agreements protecting proprietary information - all of these can add value to a company. These factors may not be copyrighted or patented, but if a chain of confidentiality is built within the organization, these items can be unique to the company.
7. Customer Lists
Through the years, newsletters and other publications build mailing/subscriber lists that create a unique loyalty base. Often it’s a number of factors that contribute to the making of such a list: services performed, partnerships created, etc. Don’t let this unique information go under-valued. The loyalty of these lists may allow the company to charge a higher price for its product or service.
These are a few of the unique factors that give a company special appeal to prospective business buyers and increase business value. I encourage business owners to look beyond the numbers and take an objective look at the factors that make a company unique.