APPEARANCE MATTERS?

The physical appearance of a business’ equipment and facilities, including office, manufacturing, and warehousing space, weighs heavily with prospective buyers and must be consistent with the purchase price. Business owners who are determined to receive a premium for their business have to consider the inherent value of a fresh coat of paint, clean workspaces, an organized warehouse, and well-maintained equipment prior to the initiation of the sales process. This may also be a great time to review and update the business logo, website and marketing materials. Simply stated, a business being sold for millions of dollars should look like a million bucks!

Organized facilities and systematically-maintained equipment conveys the message that the business’ routine affairs are in order. This includes but is not limited to inventory counts, receivables/payables, financial records, and compliance records. It also suggests to prospective buyers that the necessary capital investments have been made to sustain the future growth of the business.

A small investment towards the appearance of a business improves its marketability and increases its appeal to prospective buyers.