In a previous article I wrote about business owners being blind to the opportunities and strengths in their businesses;
“When you’re stood on a mountain of value, it’s very easy to see everyone else’s value pile but not so easy to see your own.”
On many occasions we’ve helped business owners like you create significant growth opportunities they didn’t even realise were there, or perhaps had given only a passing thought to. It’s a very enjoyable part of our work and one that I personally derive a huge amount of satisfaction and fulfilment from.
There is, however, a flip side to that “blindness” which works the other way.
When you’re there every day, you just don’t see the weaknesses, the failings, the state of the place (!), the work-arounds you do because of poor systems and processes, the under-performing staff; in short, you don’t see it as a prospective, independent third party would – like a potential buyer.
On TV in the UK recently Febreeze have been running a campaign about nose blindness – the idea being that you become so familiar with the smell of your environment – the cooking/cat/dog/sweaty sports gear etc – that you stop noticing it and become “nose-blind”. Genuinely, it’s a real phenomenon and perhaps explains why people can work in extremely unpleasant smelling environments – they just “get used” to it. We adapt to our environment.
Preparing your business for sale is one step further than getting the air freshener out; its equivalent to throwing open the doors and windows and blowing the cobwebs away. It addresses all those aspects of your business that you’ve either become nose-blind to (or were never aware of), but which your prospective buyer, their funder and their professional advisors will spot from space. The due diligence process will give them transparency and dependant on what it reveals they will utilise the findings to either price chip or confine it to the ‘too hard pile’, potentially killing the sale.
Robust pre-sale preparation by an independent third party is essential to preserve value, ensure your business passes due diligence and minimise transaction time. Whilst you might be nose-blind, your buyer and their advisors won’t.
For a no commitment, confidential chat about preparing yourself and your business for exit, please click here.