Countless articles, books, and blogs have been written about the power of storytelling. Stories are also linked to successful business acquisitions because they help your company stand out memorably from others.

Buyers receive numerous proposals from companies for sale or their advisors. However, many sellers fail to convey their message effectively. Why? The purpose of a story is not to educate but to sell. Your job is to inspire. Buyers are not interested in your company's historical details or your shoe size. Of course, the company needs to be in good shape, but at the end of the day, the buyer wants to understand what they can achieve by purchasing your company.

The purpose of stories is to create insights. Stories help simplify complex issues so that the buyer remembers your company and understands your business.

One of the most important steps in developing a story is understanding the buyers' motives. The message should work like a three-hook Rapala lure. One buyer might be attracted to a red lure, while another prefers a blue-green one. Therefore, the story must be tailored for each prospective buyer. The importance of storytelling is especially emphasized in technology companies with intangible assets. Valuing that capital is nearly impossible based solely on the income statement and balance sheet. The storyteller needs to understand more than just how to use Excel.

A good story has three main purposes:

1. Excite the buyer(s) and investors
2. Explain why your company is the right choice
3. Stand out from other similar companies

The story must be based on facts. Lies have short legs and will always be discovered. The risk is losing your reputation for years. Therefore, preparation must be thorough. If you feel your company is ready for the sales process, an external expert can help you craft a significantly better story and, with it, achieve a higher sale price. The expert's task is to present the facts memorably and leave out wishful thinking about your company's position.

Once you have made the mental decision to sell your company, be careful when selecting an advisor. The cheapest option or the one that convinces you your company is the most valuable in the world may not be the best choice. Carefully evaluate the advisors' own stories.

By Vesa Walldén