Investments

SELLING YOUR BUSINESS - DON'T UNDERESTIMATE
THE VALUE OF YOUR COMPANY'S WEB SITE
By David M. Kauppi, CBI, President Mid Market Capital

Bank Of America Investment
Business owners often contact us requesting an introductory meeting. They are contemplating the near to intermediate term exit from their business. The meetings generally have two major themes: 1. The beauty contest - they want to interview merger and acquisition firms or business brokers to evaluate their qualifications and process in comparison with other competitors and 2. Preparation for Sale - what should we be doing in anticipation of putting our company on the market?

Be Transparent, Dont Be Invisible. Copyright 2006 Elaine Currie Dont try to be the Internet Invisible Man (or woman). Many people hate the idea of having their photo on the Internet, even if it is just on their own work at home business website, but you cant tick the no publicity box if you want to run a successful Internet business. Some people shy away from the idea of having their photo freely available online because they dont want to give away their age or gender or they dont think they are attractive enough.

Investment Opportunity One of the questions I ask on their first phone call is, "What is your Web Site address?" As a potential advisor, I want to go to their site and find out all I can about their business in preparation for the first meeting. If they respond that they do not yet have a Web Site, I already know what my top priority recommendation is in response to their questions on preparing their business for sale.

At the end of the day, 1.) Looking to sell a site 2.) Looking to buy a site 3.) A means of "measurement" for a site's performance 4.) Establishing value for the sake of additional investment When a 'back of the envelope' website valuation technique is used to establish a website price, it can be almost certain that someone will lose in the transaction.

Banc Of America Investment The spectacular growth of the Internet powerhouses Google, Yahoo, and Ebay should convince you that the Internet is dramatically changing the way America does business. Think about your own buying habits. It is so convenient to type in a few key words and have a world of choices presented on your computer screen. Try this simple exercise. Do a Google or Yahoo search of some key words or phrases that a potential customer of your business might use if they were searching for a vendor of your products or services. Does your web site come up? Click on some of the sites that come up on the first page of the search. Look at their Web Sites. Do you think they are getting additional business based on their search result success? Bet on it!

Sure, anyone can make a website. But what about a quality website that entices customers and sells products Freelance web design is a key investment for building up a successful business. If your website is informative, alluring, and easy to navigate, then your business will be profitable. Otherwise, the competition that sports savvier technology will smother you.

Banking Investment If you had asked me three years ago if I thought that a business owner would hire our firm based on finding us on the Internet, I would have said no. In the last quarter we have gotten two new engagements based on a client's initial Internet search. It does not matter what type of business you run, you simply must have a Web presence. At the very least your company should have a Web Site consisting of "brochure ware". That is very simple and inexpensive to implement. Brochure ware is simply taking your company's collateral material and putting it up on a Web Site. If a buyer is evaluating several potential acquisitions, the absence of a Web Site will be perceived as a negative.

Guest I have used theLogoCompany for 3 logos, one Corporate Identity package and referred them numerous times. If you need a professional logo done at a very affordable price, this is the place. Don't underestimate the value that a good logo adds to your website or paper communications. People recognise a professional logo as a sign that your business is professional and reputable. Nothing is more impressive that getting correspondence written on proper letterhead with a captivating design.

Investment Solution Strategic If you are able to integrate your Web Site into your customer service, ordering, order status, documentation, training, etc., (eCommerce) your investment could pay huge dividends when you sell your business. The new reality is that it is considerably more cost effective to conduct eCommerce than traditional commerce. The big payoff comes when potential buyers perceive your eCommerce initiative as scaleable. My translation of this over used term is that a large increase in sales can be accomplished with a small increase in fixed costs. Buyers pay for the potential you create in your business. Buyers make acquisitions to grow and if that growth can be accomplished with improving margins, your selling price will go up.

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Investment Banking Services In real estate, the largest dollar for dollar return on investment for the home seller is their expenditure on landscaping. As a potential business seller, think of your investment in a Web presence in the same light.

Bank Investment

Alternative Investment David Kauppi is business broker with Mid Market Capital, Inc. MMC is a merger and acquisition firm specializing in providing intermediary services to entrepreneurs and middle market corporate clients in a variety of industries. The firm counsels clients in the areas of merger and acquisition, divestitures, succession planning, valuations, and exit planning. Dave is a Certified Business Intermediary (CBI), a licensed business broker, a Certified Estate Advisor (CEA), and a member of IBBA (International Business Brokers Association) and the MBBI (Midwest Business Brokers and Intermediaries). Contact Dave Kauppi at (630) 325-0123, email davekauppi@midmarkcap.com or visit our Web page www.midmarkcap.com

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