Before going to market you should create a document that conveys to buyers the significant facts about your business. This allows the buyer to learn much without having to be in direct contact with you. It should communicate the logical arguments why this is an attractive acquisition candidate right from the start. In addition, there should be enough tangible information for a buyer to tell if the proposed acquisition is a good fit or not, saving everyone time. A good package creates a basis for future credibility. While emphasizing the points of opportunity, avoid inaccurate information or data that cannot be confirmed later. Typical elements of a package include:
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Summary information on your industry focusing on positive trends that indicates this as a good acquisition opportunity. |
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A history of the business leading to the current positive reasons for buying it. |
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A discussion of operations. |
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The analysis of 3 to 5 years of financial information highlighting positive trends and comparisons with your industry. |
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A conclusion tying the previous elements together into a logical argument for acquiring the business. |