There are opportunities in every challenge presented to a business. Those who find constructive ways to deal with them usually succeed and in the process, enhance their position when it comes time for a sale.
We specialize in selling companies in the lower mid-market. These are the businesses that are too big to be seen as small, but also are too small to be considered big.[i] These are generally companies where the owner, who often is the founder, still plays an active role.
Over the past few years, we have sold companies that had a can-do culture, and that was attractive to the buyers. Others have developed that approach post transaction, and are seeing positive results by introducing it.
Those who do best generally approach the challenge this way:
- Study the request closely. Look for a way to help. Tackle if it makes sense.
- Make adjustments to provide a service at a reasonable price.
- Document everything, and use the project as a learning experience. Find efficiencies useful in other projects and as a way to boost profitability.
- Deliver on a promise. Follow up to make sure it’s right.
- Repeat the approach. Learn from it.
An example would be a customer, calling with a small order and a need for quick turnaround. Sure, it can be disruptive, but the need is there. You can solve the problem or turn business away.
Companies doing the best seem to understand that solving a problem for the customer can result in lasting business. This can translate into a more sellable enterprise for the owners. However, it is also true that some requests are just impossible.
One company we recently sold developed lasting relationships with customers through the years using this approach. It was very intentional. The result was a deep and diverse customer base, without any concentration. This made the loss of any one customer less devastating, and therefore less risky, for a buyer. It also gave the company a highly favorable rating in the marketplace.
Keep us in mind if you are considering a sale, now or in the future. We can move quickly, and go to market right away, or get together and just talk with the idea of being ready when the time is right.
[i] This phrase is pulled from Doug Tatum’s book, No Man’s Land: Where Growing Companies Fail.