What is the best way to prepare a business to be bought by private equity?
Sometimes, investing in marketing isn’t just about selling your product or service – you might want to sell your entire business.
It’s usually wise to stage a house before listing it on the market, so the best practice to attract the attention of private equity (PE) buyers is to dress your business up with a strategic marketing strategy.
What should that strategy involve? Let’s dive in.
Clarify your message
Many PE buyers will shy away from a business for the same reason prospective customers will: it’s impossible to tell what the business actually does.
Improving your messaging—particularly on your website’s homepage—will bring more clarity to your vision and attract PE buyers who already have limited time to spend on the mental gymnastics of figuring out what you do best.
Articulate the problem you solve
You need to be crystal clear about what problem your business is solving. When a visitor reads the main homepage of your website, they should be able to quickly identify what you do—ideally without needing to scroll beyond the first section of the page.
Boil down the value you provide into a 1-3 sentence description that cuts right to the chase. After the problem is clear, you can move on to explaining in more detail.
Avoid confusing language and big, complicated sentences or phrases. While you may think you’re inciting a desire to learn more, you’re confusing the visitor and losing their business. If you can’t pitch yourself well, PE investors and buyers are unlikely to consider you.
Address who you solve the problem for
The “who” is the next piece of information that needs to be crystal clear. Your audience should see themselves as your target. They should feel like you’re speaking to them as they read your website’s homepage. There are different ways to do this, but all methods lead back to the same objective: clarity.
Tell it like it is. If you help small businesses, say it. If you cater to doctors, write it down. If your target audience is home owners with landscaping needs, call them out. PE buyers want to know exactly who you sell to. Don’t beat around the bush.
Show how you solve it
In this third section, you can begin talking about your offerings. Since you’ve identified the problem you solve and who you solve it for, elaborate on how you solve it.
Provide core benefits that customers can expect. Be explicit about the product or service you can offer in a few main sentences or bullet points. PE buyers don’t want to dig for this information. Deliver it straight to them on your homepage.
Explain why you solve it differently than your competitors
Lastly, make sure to name your differentiators. If you’re like most businesses, you’re not the only one addressing a particular set of problems, but you might be the one doing it the best or the most creatively. Make sure to market your strengths well without making it all about you.
Keep your language centered around your audience and their problem that you’re solving. PE buyers want to know what makes you different from the competition and why you’re a wise investment for them. Make it clear upfront so they don’t have to dig.
If the above aspects of your business are not articulated well on your homepage, consider conducting a messaging refresh to put you in the best position for PE purchasing.
Clean up your brand
Many businesses struggle with the same common identity issues:
- Lack of a coherent brand - Your colors, fonts, logos, and messaging are inconsistent or clash with each other.
- A severely outdated brand - You have a cohesive brand but it looks decades old and needs a refresh.
- A disorganized brand - You have a cohesive look and feel but you’re trying to communicate about too many things and your customers can’t understand your main focus.
Your brand reveals your company’s promise. If it fails to do that, buyers or investors will pass you up.
You can avoid this by:
Refreshing your logo or company name
All brands need a refresh at some point. Even multi-million dollar international brands change their logos every 10-15 years. A logo redesign can make a huge difference in your company’s marketing success. Subtle logo changes can give your brand a revitalized look and keep you relevant. They are often a much-needed facelift for your business or a way to get customers re-engaged.
Changing your company name can be great for targeting certain PE buyers and taking your business to the next level, but it’s a huge commitment and should not be done lightly. Sometimes it’s the right move to make, but really consider the “why” behind a potential name change, and take time to workshop a few different options. Don’t rush into the first one you think of.
Streamlining your font and color usage
Fonts and color schemes are important for solidifying your brand’s identity. Using every color of the rainbow on your website is distracting and comes across as unprofessional and scattered. Using a few colors that are analogous, monochromatic, or complementary are great ways to create a brand that is pleasing to the eye. While most customers won’t think twice about the details, they will subconsciously identify you with your brand.
Implementing your brand book
Once you have a cohesive brand book, make sure to take the next step and implement it on your website. Your website serves as your brand’s home base, so be sure to put your best foot forward. You want it to feel just as polished and professional as the products and services you provide.
A well designed website with cohesive, fresh branding is half the battle when it comes to digital marketing and a private equity sale. .
Show your stuff
In high stakes business deals, first impressions are sometimes your only chance to convey your value. If you’re not keeping your digital presence fresh, PE buyers are less likely to see your business as viable and worth the investment.
Consider the following:
Take new headshots
Get new employees on the website and give longtime employees the opportunity to update their look. Headshots build trust, convey professionalism, and break down barriers between you and the buyer or client.
Invest in better photos of your facility, products, or services
Using stock imagery is helpful at times, but buyers can often tell when images are not organic. Don’t be afraid to let your facility shine. Even if it’s industrial, customers and prospective PE buyers will appreciate authenticity. They want to see the “real you.”
Post content on social media
Updating your social media channels show that your business is still kicking, and even thriving. Infrequent social media use sends mixed signals about your activity, whether it’s fair or not.
Record educational videos about your business and process
Being a thought leader in an industry builds credibility and trust. Video content is a valuable resource for customers that are looking to close the sales gap. PE buyers will be impressed with your commitment to sales through educating.
It’s amazing what a little marketing TLC can do to help your business shine. If you want more tips on beautifying your brand, check out our digital marketing FAQ.