Are you planning on selling your business within the next year or two? Then you are probably keen to do all you can to find ways to increase its value and appeal before you start finding a buyer. After all, the more attractive a company is, the more likely acquirers will be to pay a higher price.
Today, we’re going to explore one particularly effective method you can use to help your business stand out – strengthening your client relationships.
Let’s find out how doing this can help your business to become more appealing to would-be buyers.
1. Happy customers = a glowing reputation
One of the most obvious benefits of prioritising strong client relationships is the positive effect this will have on your brand’s reputation. When people have a pleasant experience dealing with a business, their estimation of the company automatically soars as a result.
What’s more, they are likely to spread word of their positive experiences to friends, acquaintances and colleagues, via word-of-mouth or social media. They may also leave glowing reviews on your brand website or sites like Trustpilot.
When the time comes to sell your business, interested buyers will be impressed by how your company is perceived. They will view it as a more attractive prospect for acquisition – and one which potentially deserves to sell at a premium price.
2. Strong relationships bring higher retention rates
Arguably one of the biggest struggles faced by many businesses is the matter of customer retention. Yes, getting new customers through the door can be difficult – but keeping those customers around can be a significant challenge too. This is why investing time and effort in building and maintaining positive client relationships is so crucial.
After all, without a robust customer base, your business will struggle and will not be very appealing to buyers when you try to sell it. A business that doesn’t have loyal clientele is going to represent much more of a risk, so buyers may sidestep it altogether or push for a much lower selling price.
3. You can benefit from constructive feedback
Focusing on improving customer engagement and strong relationships can help you in another essential way – by allowing you to tap into their often-invaluable insights. Through taking polls and surveys or even asking direct questions, you can find out what your customers like and dislike about your products or services. You can also discover things you can do to improve various aspects of your business and make your customer engagement levels even higher as a result.
There’s no doubt about it – being able to gain insights ‘straight from the horse’s mouth’ can be a valuable tool for boosting your brand’s appeal.
4. Loyal customers bring consistent profits
Companies that nurture a positive long-term relationship with their clients are more likely to have a consistent revenue stream. This, in turn, ensures the financial health of your business and provides more opportunities and resources for growth.
Unsurprisingly, a business that has a robust client base, a steady influx of revenue, and the capacity to expand is a business that will appeal to acquirers. It is also a business that is likely to achieve a higher valuation, meaning a better deal for the seller.
How to improve your customer relationships pre-sale
So, now you know why it’s so crucial to prioritise client relationships. But the key question is: how do you go about it?
1. Communication is key
Clear, consistent and thoughtful communication is crucial to any relationship – and that includes the ones you build with your clients.
Fortunately, these days there is a plethora of options to choose from when it comes to the channels of communication. You can interact with your customers via assorted social media platforms; through bespoke email campaigns that recommend specific products or services; through blog posts on your website; and via text and telephone calls.
Being in regular communication with your clients – while simultaneously not bombarding them – is an essential step to forging a positive ongoing relationship.
2. Thank them for their loyalty
Businesses of all shapes and sizes manage to build and maintain a robust client base through reward systems. Repaying your customers for their loyalty is a surefire way to keep them coming back for more.
Whether you introduce a VIP program, offer regular discounts, or send customers freebies on their birthdays, you are sure to boost your customer retention rates. And, as we’ve already seen, this is vital to the success and future growth of your company, which is what acquirers will be interested in.
3. Forge a bond of trust
The power of a trusting relationship can’t be overestimated, whether it’s in your personal life or your professional life. When it comes to your customers, winning and maintaining their trust is essential for a positive brand reputation.
So, how do you achieve this? By consistently providing high-quality service, delivered in a timely and personable fashion. What’s more, if you do make a mistake or something goes wrong, you should work to rebuild any lapse in trust by apologising and acting promptly to redress the issue.
Selling your business with a business broker
Once you have built up a positive reputation for your business – and a strong core customer base – you may decide it’s the ideal time to sell. Acquirers should be suitably impressed by your company’s brand appeal and client retention rates, and by the subsequent revenue the business will be generating. Your business, in short, will represent an attractive target for their own growth and expansion, and they will be likely to pay a favourable price.
But what about the selling process itself? Selling a business in the UK can be time-consuming and take up a great deal of effort on your part. If you would rather leave the task to an experienced professional, then you should hire a business broker to orchestrate the sale on your behalf.
Business brokers are the ‘middlemen’ of the M&A process, taking over key responsibilities including conducting valuations, marketing businesses for sale, and assisting with negotiations and due diligence. They can also provide legal and financial support via their relationships with experienced M&A accountants and solicitors.
All in all, having a UK business broker by your side to oversee your sale will free you of a lot of hard work and hassle, leaving you free to run the business in the meantime and plan your next steps.
Harris Acquire – for a stress-free business sale
Not sure where to find a reliable business broker; one who understands exactly what it means to say goodbye to a company and start a new chapter? You need look no further – here at Harris Acquire, we have helped numerous sellers find the perfect buyer for their business.
As a result, we know how emotional such a transaction can be, and how intimidating. But, most crucially, we also know how to get it right, allowing you to make a smooth transition and begin your new phase of life with confidence and satisfaction.
To find out all about our comprehensive services and how we can help you find the ideal people to take on your company, don’t hesitate to get in touch. Simply give us a ring on 01926 757100 or send a query to Hello@harrisacquire.com and we’ll be happy to answer any questions.
