Thanks for completing the Velocity Investment Attractiveness Score.  We have found it to be a very useful tool in assessing how attractive investors will find your business, but please do be aware of the limitations based on such limited information.

If you do want more detail on the breakdown of your score, our Support team would be delighted to provide feedback over a 10-minute Zoom call. Click here to arrange this.

Below are some ways to improve your Investment Attractiveness Score:

Financial Management: Having a firm grasp of your Company’s financials will be important to get through due diligence in a fund-raising exercise. Quality management information and good cash control will help to ensure your business is due diligence ready and give Investors confidence in what they are investing in.

Financial Performance: It is often said that the best time to fund-raise is when it is doing well i.e. all financials are trending upwards. While this is not a pre-requisite for selling your business, the more you can demonstrate this, the better chance you have of driving a higher valuation for your business.

Customers and Suppliers: In any fund-raising exercise, Investors will want to further their understanding of your business’ relationships with its customers and suppliers. One of the key things they will investigate is customer and supplier concentration as this is a critical risk indicator; if your business is heavily reliant on one, or a few, key customers or suppliers, it will be viewed as being more ‘risky’. In general, to the extent your business can spread this risk, the more attractive it will be to Investors.

Market: Most Investors look more favourably at target businesses operating in growing markets or where there are high barriers to entry and plenty of market to go after. This is because these characteristics provide future opportunities for growth for Investors to realise a return on their investment.

Management Team: If you are looking raise funds, the more you can demonstrate the success of your business is not reliant on you, the better. Having a robust management team in place to maintain the business going forward is a good way to mitigate this risk.

Infrastructure: Most Investors will favour businesses, which have spare capacity and limited investment requirements. If your business is operating at full capacity and requires significant investment to expand, this is likely to reduce the pool of Investors that will be interested. To the extent you can ensure your policies, procedures, contracts and compliance are in good order before you start your exercise, the better as well, as this will help make due diligence go more smoothly.

For more information on how to sell your business, visit here.