Are you looking to enhance the value of your business

David Blois, Managing Partner at M&A Advisory

Opinion

Whether you're buying or selling, M&A transactions come with challenges.

Buyers often worry the business may underperform after acquisition, which can lead to reduced offers. Sellers, meanwhile, are typically incentivised to grow the business post-deal and naturally want to maximise its value.

That’s why it’s in a seller’s best interest to make their business as robust and sustainable as possible before going to market.

But how do you assess the future sustainability of your business?

A strategic review can reveal whether your company represents a high-risk profile to buyers, and what steps you can take to strengthen its position and value.

What buyers see as red flags (and what drives valuations down):

▪ Low profits (typically under 15% of revenue) suggest vulnerability to even minor disruptions. ▪ Inconsistent trading performance and weak financial controls shake buyer confidence. ▪ Overreliance on one client or narrow service offering increases risk. ▪ Lack of differentiation without a clear edge, a business won’t stand out in a competitive market. ▪ Weak second-tier management raises concerns about succession and scale. ▪ Poor business development, depending solely on referrals or lacking a growth engine.

What sellers should highlight to increase value:

▪ Clear differentiation - what makes your business unique? Buyers seek IP, strong client relationships, long-term contracts, and standout market positioning. ▪ Consistent growth and healthy margins - signal a self-sufficient, resilient business. ▪ Innovation and market leadership - being ahead of the curve boosts appeal and future-proofing.

"Tackling these factors doesn’t just boost your appeal to buyers, it also builds a stronger, more resilient, and better-performing business today."