Your customer base is the foundation of your company. Knowing who they are is crucial to your business, which is why potential buyers will want to know as much as possible about your customers.

Therefore, if your are thinking about selling your business, be ready to provide a basic profile of your customer base. However, caution should be taken to protect this valuable asset. Do not share detailed information about your customer list with any prospective buyer until the buyer has taken possession.

So, you might wonder, how then do you provide customer information to potential buyers who are interested in the potential acquisition of your business. One method we have used is to compile a list of all customers and name them using letters, numbers, industry types, or a combination thereof to identify them. Next to each referenced customer is the sales revenue generated from that customer for a specified year or series of years.

It does not have to be complicated. It would be a good idea to put a list together before you start the sale process. It will have an impact on valuation.

 

You may also want to read about: : Customer Concentration Issues