Last month, we discussed how timing is often not the key factor in selling to a strategic buyer. More often, what truly matters is the strategic advantage your business offers to the acquirer.

So, how can a business position itself to be most attractive to a potential acquirer?

What buyers want most is a business that is future-proof and aligned with trends that will enable it to outperform competitors and the broader market in the long term.

When preparing your business for sale, it’s vital to present your competitive advantages within the context of the sector and market trends shaping an acquirer’s long-term growth strategy. Buyers increasingly seek targets that not only perform well today but are strategically positioned for where the industry is heading.

Founders and management teams should start by analysing macro trends influencing the sector (e.g. digital transformation, sustainability imperatives, evolving consumer preferences, or regulatory changes) and how, then, the company is better positioned than its competitors to capitalise on these trends. Additionally, explain how your capabilities can scale as these trends evolve.

To some extent, the strategic lens will vary depending on the acquirer, so it’s also important to monitor what the major players in your industry are prioritising. Many of these will be potential buyers when you decide you are ready sell.

For instance, if an acquirer is publishing reports highlighting a strategic focus on growth through digital innovation, showcase your proprietary technology, digital development capabilities, or data-driven customer feedback.

It’s equally important to examine companies that have failed in the sector. Understand what went wrong for them and understand how to avoid the same pitfalls.

Most importantly, quantify your advantages with meaningful metrics, such as market share in niche, high-growth segments or low customer churn in specific markets.

By aligning your business’s unique strengths with sector trends and broader market shifts, you will be well-positioned to meet the strategic priorities of potential acquirers.