Buyers have limited time and patience when it comes to exploring practice opportunities for sale. They swipe through opportunities like people scroll through Netflix — and if your story doesn’t catch their eye in the first few seconds, you’re passed over.
Unfortunately, many otherwise solid businesses can be diamonds in the rough, with their true value and attractiveness buried under a layer of poor financial presentation and clutter. The good news is that a business that looks unattractive to buyers often isn’t — it’s just badly presented. Behind the messy exterior, there’s often a strong, profitable and desirable operation waiting to be revealed.
First Impressions Count
When a buyer looks at your business for the first time, they are speed dating. They’re glancing at your summary, scanning your numbers, and deciding in under a minute whether you’re worth a second look.
Think of your business like a product on a shelf. No matter what’s inside, if the packaging looks messy, unclear, or incomplete, few people will stop to inspect it. The same applies to buyers looking at practices for sale. You have maybe 2 minutes to make them want to know more.
- A well-prepared Information Memorandum (IM) / Prospectus is essential.
Many owners assume that serious buyers will see through the chaos — that they’ll patiently unearth the gold beneath the clutter. They won’t.
A professionally written IM/Prospectus acts as your business’s showcase. It tells your story clearly and persuasively, sets out the key strengths, and guides the buyer’s understanding. It’s your first — and best — opportunity to make the buyer lean forward and say, “Tell me more.”
A good IM/ Prospectus:
- Summarises the business in a clear, engaging way
- Anticipates and answers a buyer’s key questions before they’re asked
- Highlights the key value drivers
2. Clear Financials, Clear Value
Too often, business owners present buyers with accounts that make the business look poor or otherwise hard to decipher because they have:
- Vague expense categories that don’t specify what money is being spent on.
- Expenses that are personal, one-off or discretionary mixed throughout. These expenses artificially reduce the profit and understate the true business performance.
With financials, buyers won’t dig much to find gold; if they don’t see it quickly, they’ll assume there’s none there.
When you are trying to sell your business a well-organised profit and loss report with specificity in expense categories and any one-off, personal or discretionary expenses clearly identified and added back will give buyers greater confidence in what they’re looking at.
Conclusion: Presentation Equals Price
When it comes to selling a business, you don’t get a second chance to make a first impression. A clean prospectus/IM and clear financials aren’t paperwork — they are your marketing tools.
It’s not just about getting a buyer interested — it’s about getting them to pay what your business is truly worth. A clearly presented business with clean numbers will attract more interest, more competition and ultimately, a higher price. Buyers pay premiums for a business that they understand. They discount confusion.
If you aren’t sure how to present your practice to get the best possible result… relax! That is the role of a good business broker.
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