Money and Love
No one buys a company as it is now.
Yeah, buyers inquire about the current profit level, client list, team quality, and so on. They listen carefully to the business's creation story. But in reality, their interest lies elsewhere.
Verifying existing facts is hygiene. That's how buyers shield themselves from incompetence and deceit. It's unbearable for a pro to be made a fool.
Buyers also try to predict future cash flow. Will it grow or suddenly dry up? The income and profit dynamics over the last 5 years aren't a guarantee, but a trend, hence a hint.
Unlike a financial investor, a strategic buyer is concerned about something else. And that "something" is hard to grasp for the founder who doesn't cherish his company X with all his heart.
The secret is that a strategic buyer is indifferent to company X. He is passionate about his business Y. His question is - how will buying "Element X" help "Rocket Y" go higher and faster?
Founders feel offended by the buyer, thinking, "They don't value my business." The paradox is that you'll get a higher price for your company if you manage to love the buyer's business as much as he loves it.
P.S. Book the Catalyst Session, if you and your business need a boost.
