Business Profile

The first step in preparing a business for sale is to develop a professional business profile and a listing which will outline the full scope of the business both past, present and future. A buyer will feel much more confident if they can see that forward planning has taken place.

The business profile on your business normally includes:

Your business profile will involve the careful analysis and review of various business processes and elements ultimately enabling the prospective buyer to have a clearly defined picture of the business’ current and future operations.

  • A detailed overview of the business
  • Detailed descriptions of:
    • The administration and operations of the business
    • The facilities and business premises (if included in the sale)
  • A detailed growth strategy
  • An accurate financial scenario to forecast company resources and build a workable business strategy over the next (3) three years.
  • Synopsis of prior fiscal years financial performance
  • Details on the key industry sectors you serve
Business Profile
Your business profile is an important document that articulates your overall value proposition and will comprise of approximately 15 to 25 pages of key information that can be used as a critical sales tool during the sale process. This document will be reviewed by potential buyers who have signed a non-disclosure document.

Pavilion Business Services will create a business profile that highlights the advantages of acquiring your business enterprise and presents the unique value proposition for your company.

What do Professional Buyers look for?

Pavilion’s buyer database consists of thousands of professional buyers, venture capitalists, angel investors and strategic buyers. When dealing with a professional buyer such as a private equity group, there are a number of factors to consider before approaching with a new opportunity.

Professional buyers that are active in the mid-cap market have specific criteria for acquisitions. While some of these criteria may include focusing on specific industries or geographic locations, there are a number of general business attributes that are sought after by all professional buyers.

Professional business buyers look for is consistent EBITDA* figures of $1 million or more. (Note* a large portion of private equity groups focus on $3 million or more in EBITDA, and will consider a company with less than that as an add-on to an existing portfolio company only.)


What other criteria do buyers look for?

 In addition to EBITDA figures, professional business buyers will look for the following attributes in a potential acquisition:

  • Established business systems and processes
  • No significant customer concentrations (diverse customer base)
  • High barriers to entry in the industry
  • A business model that is scalable
  • An effective management team
  • Consistent sales growth and potential for expansion
  • Proprietary technologies (intellectual property, patents, etc)
  • Not reliant on a dying industry (recordable media manufacturing, photo finishing, printing)
Scalable Business

What is EBITDA?

(Earnings Before Interest, Tax, Depreciation and Amortization)

EBITDA = Revenue – Expenses (excluding tax, interest, depreciation and amortization)

EBITDA is essentially net income with interest, taxes, depreciation, and amortization added back to it, and can be used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions.

EBITDA Figures