One vital yet often overlooked factor is visibility. How can potential investors decide whether to invest in your business if it doesn’t even fall under their radar?
Many fail at this initial hurdle, says Jean-Philippe Verdier, managing partner and founder of Verdier & Co. Corporate Advisory. “During our scoping and screening processes, we come across businesses which have the ideal profile for our client but simply aren’t discovered by financial databases, deal sourcing or AI platforms used by professional bankers.” Over 20 years’ experience in advising corporate and private equity clients and executing M&A transactions means that this London-based independent investment banking firm can also view matters from the other perspective, namely that of the corporate buyer. And advise us accordingly.
Thankfully, if you’re keen on becoming an acquisition or investment target there are practical ways to ensure that your business gets noticed, says Verdier. Firstly, companies need to clearly outline their services and build reliable partner networks, potentially by obtaining top tier certifications and accreditations. It is also worthwhile companies include a descent business description in their reported accounts, since these are precisely the key resources queried by sourcing databases/platforms (Companies House, Infogreffe…). Participating in industry events, publishing proprietary content and research, and releasing easily accessible digital content can also help boost their corporate profile.
And a strong digital presence via a corporate website and a detailed LinkedIn profile is essential.
Go that extra mile
Going that extra mile on details can make all the difference – information about company size, key capabilities and competencies, breakdown of business or some details on employees are of keen interest to corporates, adds Verdier. But obviously don’t forget that the level of disclosure needs to be managed in the context of clients, employees and competitors.
A fundamental indicator for Verdier & Co. is how likely are you to sell your business? Corporates and investors seek an understanding on an inflexion point in the financing needs or ownership structure of the target. Hence providing indications on this subject, including fundraising rounds, is of particular value or else they might lose sight of your business and its potential.
And don’t sell yourself short. Actively advertise your best features, namely “the key terms that a trade buyer will appreciate”, says Verdier. For example, what are your ESG practices? “Developing sound corporate values and positive culture in the workplace mean you can be more easily integrated into a larger corporate and make you far more attractive to them and to financial investors.”