Occasionally, Codedesign Team is part of research teams and business evaluation task forces, mainly when a VC company needs auditing digital marketing projects, e-commerce or companies that support a great part of their revenue online. It is a huge risk to jump on a business venture without understanding the ins and outs from a financial perspective, business, staff, tax, and digital marketing strategies. We provide deep due dillegences to some clients on expations and acquisition. But that got me thinking about selling a business, and if you market it yourself or use a team of marketers. The great question is: what is the vale of the untagible that a great brand and marketing strategy brings in?

When it comes to selling your business, one of the first decisions you'll need to make is whether to handle the sale yourself or enlist the help of professionals. This decision can significantly impact the sale process and ultimately, the final price your business will command. The journey of selling a business is filled with complexities and nuance, requiring a keen understanding of market trends, valuation techniques, and negotiation tactics. This document aims to shed light on the advantages and disadvantages of marketing your business yourself, helping you make an informed decision about this critical aspect of the sales process.

It Takes Time and Effort

One compelling reason against marketing your business yourself is the time and effort required. Selling a business is a time-consuming process; it involves preparing the business for sale, advertising it, vetting potential buyers, negotiating prices and terms, and facilitating the closing process. All these tasks demand a significant amount of time and expertise. As a business owner, your time might be better spent focusing on running your business and ensuring it maintains its performance throughout the sale process.

Even more so than time, the effort required to sell a business can't be understated. As mentioned above, selling a business involves understanding and navigating various aspects of the sale process: market trends, valuation techniques, negotiation tactics, etc. Without comprehensive knowledge and experience in these areas (which many small business owners don’t have), you could unintentionally damage your chances of securing an optimal sale price. Furthermore, the process of researching and preparing your business for sale can take weeks or even months; managing this while still running a successful operation - or even multiple operations - can be incredibly taxing.

Professional Knowledge Can Increase Your Return

On the other hand, enlisting the help of professionals has its advantages as well. First and foremost, professionals possess the knowledge and experience to navigate the complexities of selling a business. They understand how to prepare a business for sale, as well as identify potential buyers and evaluate their offers. If you are wondering, should I use a broker to sell my business? The answer is a very likely yes. A broker can utilize their marketing network to promote your business, leading to increased visibility and more offers from prospective buyers. With expertise in valuation techniques, negotiation tactics, and closing process management, a broker can ensure that you get the best value for your company while avoiding costly mistakes that you may not be aware of.

Most professional advisors are also well-versed in the intricacies of market trends and valuation techniques. This means they can provide objective feedback on the value of your business and help you make sure it isn't undervalued. Such knowledge is essential for getting the maximum return when selling a business, helping boost both the sale price and any additional terms you might be able to secure from potential buyers.

Making an Informed Decision

When it comes to the decision of whether or not to market your business yourself, it ultimately boils down to a personal choice. You must carefully assess your current situation, available resources, and potential risks that could impact the sales process. Do you possess the necessary time and expertise to manage the entire process successfully? Are you willing to invest the required effort to ensure an optimal sale price? Are you comfortable with the market trends and valuation techniques associated with selling a business? These are all important questions that should be meticulously considered when determining whether to handle your own sale or seek professional assistance.

At the end of the day, only you can decide what’s best for your business. Hopefully, this document has provided some insight into the advantages and disadvantages of marketing your business yourself, helping you make an informed decision that will ultimately determine the future success of your business.

The Risks of Going It Alone

Marketing and selling a business independently without professional help carries inherent risks. While it may save you from paying a broker's commission, it can also lead to missed opportunities, lower valuation, and potential legal complications. These risks stem from a lack of market insight, a limited pool of potential buyers, and possible errors in preparing the legal paperwork required for the sale. Potential buyers might also approach a privately sold business with caution due to the absence of a professional intermediary, which could negatively affect the perceived value of your business. Therefore, while going it alone can seem like an appealing choice, the potential pitfalls must be carefully evaluated.

The decision to market your business independently or to engage the assistance of professionals is multifaceted, requiring careful consideration of various factors. Although taking on the sale yourself might save on the broker's commission, the potential risks and costs such as lower valuation, missed opportunities, and legal complications could outweigh the savings. Professional help, on the other hand, brings industry insight, an expanded buyer network, and expertise in valuation and negotiation, potentially enhancing the final sale price and the overall success of the sale process. It's essential to weigh these aspects in light of your individual circumstances, resources, and understanding of the business sale process. Ultimately, the choice that best serves your interests and those of your business will guide your decision.

Digital Marketing Due Diligence 

Conducting digital marketing due diligence for a business involves a comprehensive review of the company's online presence, strategies, tools, and performance metrics. When you're evaluating a business's digital marketing efforts, consider the following checklist:

1. Digital Strategy and Goals

   • Define the overarching digital strategy.
   • Identify the short-term and long-term goals.
   • Analyze alignment with overall business objectives.

2. Website Audit

   • User experience (UX) and user interface (UI) evaluation.
   • Mobile optimization and responsiveness.
   • Loading speed and performance.
   • SEO (Search Engine Optimization) health, including on-page and technical SEO.
   • Content quality and relevance.
   • Conversion rate optimization practices.
   • Security (SSL certificates, etc.)

3. SEO Analysis

   • Keyword rankings and performance.
   • Backlink profile and quality.
   • Organic traffic trends and growth.
   • On-site optimization (meta tags, URL structure, etc.)
   • Technical SEO factors (sitemap, robots.txt, site speed, etc.)
   • Potential penalties or black-hat techniques.

4. Paid Advertising (PPC)

   • Ad spend and return on ad spend (ROAS).
   • Ad copy quality and relevance.
   • Landing page performance and conversion rates.
   • Audience targeting methods.
   • Performance on different platforms (Google Ads, Bing Ads, etc.)

5. Social Media Presence

   • Platforms utilized and their relevance to the target audience.
   • Engagement rates, follower growth, and overall activity.
   • Paid social advertising efforts and performance.
   • Content strategy and calendar.

6. Content Marketing

   • Quality and relevance of the content.
   • Content strategy and calendar.
   • Performance metrics (traffic, engagement, conversion, etc.)

7. Email Marketing

   • Email list size, growth, and segmentation.
   • Open rates, click-through rates, and conversion rates.
   • Email platform and automation capabilities.
   • Compliance with laws and regulations (e.g., CAN-SPAM Act).

8. Affiliate and Partnerships

   • List of current partnerships and affiliations.
   • Performance metrics for each.
   • Terms of agreements.

9. Analytics and Reporting

   • Platforms and tools used (e.g., Google Analytics, Tag Manager).
   • Accuracy of tracking setup.
   • Key performance indicators (KPIs) tracked.
   • Past performance reports and their insights.

10. CRM and Marketing Automation

    • Platforms used and their capabilities.
    • Data quality and management.
    • Automation workflows and performance.

11. Competitive Analysis

    • Identify main competitors in the digital space.
    • Analyze competitors' strengths and weaknesses.
    • Market positioning and unique selling propositions.

12. Regulatory and Compliance

    • Adherence to digital advertising standards.
    • Compliance with data protection regulations (e.g., GDPR, CCPA).
    • Other industry-specific online regulations.

13. Budget and ROI

    • Digital marketing budget allocation across channels.
    • ROI for each channel and overall.
    • Cost per acquisition (CPA) for main channels.

14. Team and Resources

    • In-house digital marketing team expertise and structure.
    • External agencies or freelancers involved.
    • Training and development efforts.

15. Technology Stack

    • Martech tools and platforms in use.
    • Integration capabilities.
    • Future tech needs and scalability.

This list provides a foundational overview of what to consider during a digital marketing due diligence. The specific requirements may vary depending on the industry, company size, or specific goals of the assessment. 

Doing It Yourself

Pros:

• Cost-Efficiency: You won’t have to allocate a budget for external help.
• In-depth Understanding: Handling the audit yourself means gaining a deeper understanding of your own business operations and strategies.
• Full Control: You have full control over the audit process, setting your pace and focusing on the areas you find more important.

Cons:

• Time-Consuming: Conducting a comprehensive audit can be time-consuming, potentially diverting time from other critical business operations.
• Lack of Expertise: Unless you have a background in digital marketing, you might miss out on expert insights and analyses.
• Bias: Being intimately involved in your business can sometimes lead to oversight due to personal biases.

Hiring Consultants

Pros:

• Expert Insight: Consultants generally bring a wealth of experience and can provide expert insights and fresh perspectives.
• Focused Approach: Consultants can provide a more focused approach, helping to pinpoint and address specific issues.
• Flexible Engagement: You can engage consultants for a short-term project, providing flexibility and potentially lower costs compared to a full-time agency.

Cons:

• Cost: Hiring consultants can be expensive, especially experienced ones with a proven track record.
• Less Control: You’ll have less control over the audit process compared to doing it yourself.
• Limited Resources: Individual consultants may have limited resources compared to a full-service agency.

Hiring a Digital Agency

Pros:

• Comprehensive Service: A digital agency like CodeDesign can offer a comprehensive service, utilizing a team of experts with different specialties.
• Access to Tools: Agencies typically have access to premium tools and software that can aid in the audit process.
• Experience: An agency brings a wealth of experience working with various clients, which can be leveraged for your audit.

Cons:

• Cost: Engaging an agency can be the most expensive option, especially if it's a well-established one.
• Potential Misalignment: There might be a misalignment in understanding your business goals and culture if the agency doesn't invest time in proper onboarding.
• Longer Engagement: Agencies often seek longer-term engagements, which might not be ideal if you're looking for a quick, focused audit.

Codedesign Digital Audit classical timeline

An ideal timeline for a digital marketing audit is pivotal to acquiring a business as it allows you to thoroughly evaluate the digital assets and strategies of the potential acquisition. Here’s how you might go about it, considering CodeDesign’s expertise in due diligence for digital:

Week 1-2: Preliminary Analysis

In the initial weeks, you would focus on a preliminary analysis of the business's digital assets. CodeDesign would kickstart this phase by identifying and reviewing the business's current digital marketing strategies, website performance, and SEO health.

Example: During this period, CodeDesign might identify that the business has a robust email marketing strategy in place but finds room for improvement in their SEO practices.

Week 3-4: Deep Dive

Following the preliminary analysis, a deep dive into the intricate details of the digital landscape of the business is undertaken. CodeDesign would scrutinize data analytics, customer segmentation, and CRM platforms to gauge the data quality and customer engagement strategies employed by the business.

Example: CodeDesign might find a well-segmented customer database that allows for targeted marketing strategies, giving the business a competitive edge in the market.

Week 5-6: Competitive Analysis

During this phase, CodeDesign would undertake a competitive analysis to assess the business's digital stance compared to its competitors. This involves analyzing market share in the digital space and understanding the unique selling propositions of the business.

Example: The experts at CodeDesign might discover that although the business has a lower digital market share compared to competitors, it has a niche and loyal customer base, presenting an opportunity for growth.

Week 7-8: Final Reporting and Recommendations

In the final stage of the audit, CodeDesign would compile a comprehensive report outlining the findings and recommendations based on the audit. This would be pivotal in guiding your final offer for acquiring the business.

Example: Leveraging the insights gained through the audit, CodeDesign might recommend a strategy to enhance the SEO practices of the business, aiming to elevate its digital presence and market share.

Week 9-10: Making the Offer

With a detailed understanding of the business's digital landscape, curated by CodeDesign, you would be well-equipped to make an informed final offer for the acquisition.

Example: Based on CodeDesign’s detailed audit and recommendations, you might decide to proceed with a strong offer, backed by a strategic plan to capitalize on the identified growth opportunities post-acquisition.

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In summary, an ideal timeline for conducting a digital marketing audit before making a final offer for acquisition would span approximately 10 weeks. This timeline allows CodeDesign to meticulously perform due diligence, ensuring you have a holistic understanding of the business's digital health, thereby aiding in making a well-informed acquisition decision. It’s a structured approach, giving each phase the time it deserves to ensure a successful acquisition.

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