Writing an executive summary for an online business sale
When you sell your business through an online business, and a potential buyer answers to one of your online ads, you will need an effective executive summary that presents the business in an informative and concise format.
There are several areas of the company that need to be addressed in order to develop interest and provide the prospective buyer with sufficient information to determine whether it is appropriate for them.
A business executive summary should not exceed 5-7 pages. Short paragraphs, bullet points, simple tables and graphs and images are most effective and busy than a long novel about your business.
The areas to which the summary refers are as follows:
Business History – Let the buyer know what year the company was started. Where was the original location? Has the business been relocated? Are you the original owner of the company or did you buy it from someone else? How many people have worked in the company? What was the growth pattern of the company? This kind of summarization point gives a prospect a quick overview of how the company began and where it stands today.
Business Location – Enter the address of the company and attributes about the location. Is it a high traffic situation? Is there a good street view? Is visibility necessary? What is the square meter of the building? How is the customer? Is it a stand-alone location or is it in a strip shopping center. Own or rent the location? How much does the monthly rent? Including a small card the physical location is beneficial. Also, images that are included at the end of the summary are very helpful.
Business Products / Services – Provide a brief summary of what your company provides. Provide a breakdown of the main products / services that the company provides and what percentage of annual sales, product or service. An example of a restaurant would be:
Dine-In Food sales 58%
Food sales up 11%
Catering Food sales 10%
Alcohol sales 18%
Gift Certificate 3%
Current business – Is the business exclusively owned or is there a partner or several partners?
License requirements – does the company need special licensing? Examples would be a liqueur license or a contractor’s license.
Customer mix – For companies with recurring customer sales, prepare a chart showing your customer mix. Because of the concern to reveal the names of your customers, it is acceptable to label them as customer A – 15%, customer B – 12%, customer C – 8%, etc. A buyer wants to see that you have several customers and that is not. A particular customer makes more than 25% of your business.
If your business is the kind where it is not practical to have a customer chart like a landscaping business with 100+ customers, then maybe a statement that 60% of your clients are residential, 30% are commercial and 10% Are institutional. Really, you just have to give something that gives a buyer a good idea of what customers the company has and how much sales volume they take into account in the business.
Personnel profiles and longevity – Good employees with a long term of office with the business are an asset and must be presented to the buyer. Again as above, you do not want to give certain employee names, but you can add titles like Manager, Assistant Manager, Office Manager and so and then enter the length of the service. If you have 40 production workers, list them as a group and give a general range of employment time with the company.
Leasing and Contracts – List of all leases or contract obligations that you expect a buyer to take over from you when you sell the business. In addition to the rental agreement for the business location, you must not forget any equipment leases, advertising contracts or future employee agreements.
Financial results – For the summary, a brief financial summary using the current year to date financial information and the last three years of year end financial information are prepared. At a minimum, this summary should include the gross annual turnover, the cost of the goods, the total operating expenses and the profit for the business. The summary is not the place for full financial disclosure. Buyers want to see the trends in sales, operating and operating costs on a yearly basis.
Asset Value – Enter a dollar value of the fair market asset value of the furniture, fixtures, equipment and inventory at costs that are going to transfer with the business. This is also not the place for a complete listing of the company’s assets, but only a general statement to disclose the value of the assets that are included in the sale.
Competition Analysis – Provide a brief analysis of where your business is, how many direct competitors you have, and what your competitive advantage might be.
Training and Transition – Provide an indication of a buyer as you will help with the conversion of new owners into the business. How long will you stay after the sale to help the new owner? Will you introduce them to important customers and suppliers? Will you have necessary licenses for the operation of the company for a new owner?
Images – At the end of your summary are some pictures of your company. Show the street view and some interior images of the company. Images of larger devices, your product, your menu, your fleet of vehicles will also add the summary.
An effective executive summary must cover a lot of important areas about your business. As mentioned above, short paragraphs, bullet points and tables and graphs are the most effective method for presenting a lot of information about your business in a format that is easy and interesting to check for a buyer. You have future opportunities to engage the buyer in conversation where you can provide more details about the business and its operations.