• BLOG
Christian Baldwin, August 8 2023

How to WOW Buyers, Lenders and Landlords

Hey everyone, my name is Christian Baldwin, and I am with Black Diamond Mergers and Acquisitions. I hope you're doing great today! I want to talk about a topic that's geared toward business owners, and it is regarding getting your business in top shape for organizational efficiency.

Small Businesses in Need

Well, what do I mean by that? When you take your car in to get it serviced, they're going to give you a report that says, “Hey all these things are great! Here's some things that you might want to look at in the future, and here's some things that you need to look at now.” Maybe your brakes are completely worn out and you need to get those fixed. At Black Diamond, we know that there are many businesses that aren’t prepared to exit when the time comes. When they come to us, we help them get organized and analyze all the fundamental aspects of their business from the lens of a prospective purchaser.

Why Should you Organize your Business?

There are a lot of reasons why you need to organize and analyze your business. For example, let's say your business needs a loan. How are you supposed to apply without the required information? Once you do this exercise and go through our program, you will have everything you need right at your fingertips, in one file location. So, you can send all important information to your lender and your attorney when you do estate planning or business planning. It is invaluable when you make a succession plan. Then, when you receive an offer from a buyer, whether it was solicited or not, you can send this information to them, after you sign a confidentiality agreement of course! Then, they can make a quick decision on the value of your business. Understand that the more information you have at that point in the process, the more likely your business value is going to increase because you're not wasting time pulling this all together. The more time you waste trying to do that, the less interested any buyer is going to be. They're going to move on if you can't produce documentation in a timely manner.

What to Expect When Organizing your Business

So, what would that entail? Well, looking at your business in a very thorough, intentional, step-by-step method forces you to think about things one at a time in a detailed way. This can start with the Articles of Organization or Articles of Incorporation. Think about the operating agreement, is it signed, is it done correctly? As you go through this process you will reach out to individual experts, such as business advisors like your accountant, attorney, insurance broker, or even your health benefits provider. So, you have all these individuals or companies that you have talked to about the different aspects that you offer as a business and the features that make your business work. You can’t forget about the contracts with suppliers and vendors and what those might look like for your business and potential buyers.

With our Process, you can WOW Anybody

When you go through these processes, you might think about how we could make this more efficient or if there's a better angle that we can look at it. Whatever stage of business that you're in, I really encourage you, as a business owner, to take the time to look at all the fundamental aspects of your business. You should do it in an organized way so that, when an opportunity knocks, such as a loan, you are ready to go! You are going to WOW those on the other side looking at this information. It is not uncommon for them to say, “I've never seen a business as organized as this.” That's where we want you to be. Here at Black Diamond, we would be more than happy to help you get there!

To learn more about how and why you need to organize your business, check out this page: Self Guided Business Preparation Program (blackdiamondma.com)


Written by

Christian Baldwin


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