Company Profile When Selling a Company: The Key to a Successful Acquisition
At the sale of your company Creating a strong company profile is one of the first and most important steps. This profile describes your business in a way that is relevant and appealing to potential buyers. The company profile forms the basis for your sales documentation and helps determine which parties you'll speak with. A well-crafted profile helps you communicate effectively, build trust, and find the right buyer more quickly.
Why is a company profile important when selling?
1. Clear presentation of your company
The company profile provides potential buyers Quickly gain insight into the core of your business. You demonstrate what makes your company unique, its strengths, and its value proposition.
2. Attracting the right buyers
By sharing the right information you attract buyers that actually fit your type of business, your industry and your sales goals.
3. Efficient sales process
A complete and professionally prepared company profile makes the sales process smoother. Buyers have fewer questions in the initial stages, allowing for more in-depth conversations.
What does a company profile contain when selling a company?
A company profile contains all relevant information about the business, giving potential buyers a good first impression. Some of the most important components include:
General company information
: Name, location(s), legal form, year of establishment and any subsidiaries or affiliated parties.
Sector and core activities
: A clear description of the sector in which the company operates and its main products or services.
Size of the company
: Revenue, number of employees (FTEs), market share, customer base and distribution.
Market position and competition
: Insight into the company's position in the market, its distinguishing features and competitive advantage.
Company structure and organization
: Overview of the internal organization, management structure, automation and operational processes.
Culture and identity
: Company culture, core values, and market image often play a larger role in sales than expected.
Reason for sale and entrepreneur's involvement
: The motivation to sell and the role the entrepreneur may still want to play after the transfer.
Financial key figures (anonymized)
: Historical results, margins and balance sheet characteristics, often presented in broad outline in a separate information memorandum.
Step-by-step plan for creating a company profile
1. Determine what you want to convey
What are your company's unique selling points? What does a buyer need to know to show interest? Make sure this is clear before you start writing. Consider your differentiators, core values, and strategic position in the market.
2. Collect business information
Make sure you have up-to-date figures, organizational details, product descriptions, customer information, and market insights. This forms the foundation of your profile. The more complete and up-to-date the input, the stronger and more reliable your final profile will be.
3. Describe the company clearly and objectively
Write concisely, factually, and professionally. You don't have to reveal everything, but provide enough information to pique the interest of the right parties. A good balance between transparency and confidentiality is essential.
4. Have the profile assessed by an advisor
An M&A advisor will help you refine the profile and make it more commercially attractive where necessary, without revealing essential details. An expert will also ensure that the profile aligns well with what buyers in the market expect.
5. Incorporate the profile into a teaser or information memorandum
Depending on the phase in the sales process, the profile is processed into a short teaser (anonymous profile) or extended information memorandum (confidential and on the basis of non-disclosure agreementThis provides you with a suitable and professional document for every phase of the process.
6. Use the profile in communication with buyers
The company profile is an important communication tool for potential buyers, investors, and other stakeholders. Consistent and clear information builds trust. It ensures that all conversations are substantive and focused from the outset.
How do you create an attractive company profile?
Creating a compelling company profile is important not only to inform buyers but also to pique their interest and build confidence in the value and future of your business. Here are some key considerations:
Be transparent but careful
: You don't have to share everything, but do clearly show what makes your company strong and what its potential is.
Emphasize the differentiating factors
: What makes your company unique? Think of your customer base, location, technology, staff, or market share.
Show growth potential
: Buyers are interested in what the company can become, not just what it is now. Identify concrete growth opportunities and developments.
Work with facts and substantiation
: Use substantiated figures, market data, or references to support your story. Avoid vague claims or exaggerated language.
A good company profile is factual, strategic, and tailored to the target audience. It helps you convince buyers of your company's value without revealing everything right away.
Tips for creating a strong company profile
Tune to the type of buyer
: Consider who you want to approach, such as a strategic buyer, an investor, or a MBI candidate, and tailor your profile accordingly. Every buyer looks at your business from a different perspective, so tailor your message accordingly.
Avoid ambiguity or jargon
: Use clear language and briefly explain technical terms when necessary. This prevents misunderstandings and speeds up the process. A clear profile also creates a more professional impression for potential buyers.
Work in phases
: Start with a short, anonymous teaser for the first selection, followed by a more detailed profile in the information memorandum after signing a non-disclosure agreement (NDA). This way, you protect sensitive information while still sharing enough to generate interest.
Keep the profile up to date
: Make sure your profile stays up-to-date, especially if the sales process is taking longer or there are developments within the company. A recent and accurate profile prevents surprises and increases buyer confidence.
Why choose Match Plan?
At Match Plan, we guide dozens of entrepreneurs each year in preparing their businesses for sale. We can help you with:
- Creating a professional and compelling company profile.
- Structuring the sales documentation (teaser, information memorandum, etc.).
- Selecting and approaching suitable buyers.
- Guiding the entire sales process, from preparation to closing.
A strong business profile is key to a successful business transfer. Want to sell your company and start the sales process smoothly? Contact us for a free consultation. We're happy to help you on your way to a successful sale.
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