By Mark Hayward
If you speak to any PR consultant, they will talk about reputation, sales, marketing and how a great presence in the media can support them all.
All of which is true.
However, an overlooked benefit of enhancing your reputation through great media coverage is when a business is being prepared, and going out to market, for sale.
If you’re selling a business there’s not only a financial benefit to a strong reputation, but it makes you a much more attractive proposition for buyers.
So how does this work?
In the same way a potential employee in an interview is more likely to get the job if they come recommended, with strong references behind them, a business is much more likely to develop strong links with prospective buyers if they have a robust history of media coverage and content that helps to tell their story – in short, a good reputation.
In business, reputation is everything.
Not only does it create a more sellable proposition, but some studies suggest that reputation contributes between 3 and 7.5% to annual revenue. I’d argue in some cases that figure could be a lot higher.
Therefore, allocating budget to building and maintaining your reputation should be seen as an investment rather than a cost.
In reality a company is worth whatever someone else is willing to pay for it, so let’s explore that for a moment.
I believe reputation is linked to the financial value of a business for a number of reasons:
- A company’s reputation is the foundation for customer trust and investor confidence. The better your relationship with customers, the “stickier” they become and the greater value they will be to the business.
- Reputation can also act like a magnet. Not only helping retain your customers but also attract new ones.
- It can also allow businesses to command high prices – ultimately adding to profitability.
- If the worst happens, a business with a strong reputation can withstand a crisis, mitigating against potential risks.
So let me ask you this – if you were looking to buy a business, would you pay a premium for a company that not only has loyal customers, but also easily attracts new customers? A company that can charge a premium when the worst happens can easily weather the storm.
For me, that’s a no brainer.
For any business owners looking for an exit strategy, or succession planning, PR is a tool that can not only help make that happen, but also help realise the full financial value of the business.
If you’re considering putting your business on the market give us a call and we can help guide you through the best strategy for leveraging PR.
Contact us for a longer chat!