Is ISO 9001 certification important when buying or selling a business?

ISO 9001 is the internationally recognised standard for quality, so it’s not surprising that accredited companies are able to win more elusive tenders.

But have you considered the benefits of having ISO 9001 when you want to sell a business or are thinking about acquiring a business?

Could ISO 9001 make your business more attractive to buyers? Is buying an ISO 9001-accredited business less of a risk?

What does ISO 9001 certification mean for buyers and sellers?

Robust systems and high standards

Some buyers are looking specifically for struggling businesses with huge potential to improve operations, sales and value. If this is the case, buying a business with world-class systems doesn’t make much sense.

But some buyers are looking for the opportunity to buy a successful, profitable business that will generate a nice income without them having to do much work. Others buy businesses to acquire assets or skills. In these cases, the buyers won’t want to inherit a load of problems and bad habits.

ISO 9001 demonstrates that the business has robust systems and operates to a high standard. This means the buyer is unlikely to suddenly uncover any major issues after completing the acquisition.

If you’re selling your business, having ISO 9001 in place could be the reassurance a buyer needs that you’re offering them a steady ship.

If you’re a buyer and you’re looking for a business that isn’t going to cause you too many headaches when you take over, an ISO-accredited business is lower risk.

Transparency and accurate data

To remain ISO accredited, businesses have to undergo regular audits. Sellers can use their most recent audit report to give potential buyers real insights into the business. Buyers can use it to get a true picture of the business from an external auditor’s perspective.

This transparency is beneficial to both parties.

It builds confidence before the sale and means buyers know exactly where improvement and investment will be needed once they take over.

As a buyer, opting for an ISO-accredited business will enable you to make decisions based on accurate data. You can get a clearer picture of complaint management, leadership, order processes, employee engagement, health and safety and risk management, as well as the financial performance of the company.

Business resilience

If a buyer doesn’t want to work in the business, they’ll be looking for the company that has the best chance of operating without them. The one that has strategies to adapt to threats and opportunities accordingly. The one with proven processes and robust systems.

Having ISO 9001 accreditation means having documented structures, systems and processes. Having this structure, along with having tried and tested business continuity plans and up-to-date risk analysis reports, will give buyers more confidence in the resilience of a business.

Quicker exit for sellers

Not all sellers want to remain in the business after acquisition, and not all buyers want to retain them. Sometimes it’s better for both parties if there is a clean break.

When a business has ISO frameworks in place, it is not reliant on any one person’s knowledge to operate. This means the seller can exit the business faster without disrupting the entire company.

Things for buyers to consider

If you’re looking for a “fixer-upper” – a business with lots of improvement opportunities to increase value – then ISO9001 probably isn’t desirable.

But if you’re looking for a business investment that won’t require much work from you after the acquisition, it’s definitely worth looking for an accredited organisation.

There’s a reason ISO certification is recognised globally, and so many organisations insist their suppliers have certification. It’s not because of a piece of paper; it’s because that piece of paper demonstrates that the business works to world-class standards.

Things for sellers to consider

If you’re considering exiting your business within the next five years, now is the time to start getting it ready for sale.

Having ISO certification can help you become a more attractive proposition to buyers and make it easier for you to exit the business after the sale has gone through.

But even if you don’t want to go to the extent of getting certified, implementing the ISO frameworks is beneficial. Not only will it improve every area of your business, but it will also help you understand where you can make the biggest improvements with the smallest amount of effort or investment.

Plus, it will allow you to give potential buyers a clearer view of how your business operates, so they feel more confident in the purchase.

How The Systems Link can help

At The Systems Link, we focus on implementing the frameworks behind ISO certification and ensuring businesses maximise their potential.

If you are thinking about ISO accreditation, we can conduct a gap analysis to help you understand what you’d need to do to gain certification.

If you already have ISO certification but aren’t seeing the benefits, we can help your team maximise the opportunities ISO 9001 offers. We can also help you use ISO 9001 to attract more potential buyers and satisfy their due diligence checks.

Get in touch to learn more about how ISO 9001 can benefit your organisation.

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