What is the "value" of your processes, procedures and systems?

A couple of recent client interactions reminded me that their "systems" which included Excel spreadsheets, accounting software and manual processes may not have much "value" to a prospective buyer of the company.

The "value" of your systems which include software, processes and procedures depends on what a potential buyer may do with the company after acquisition. 

In one case, the buyer was another company in the same industry but different geographic territory.  While they have continued to use the sellers software to run the locations acquired, they are now migrating important data from the sellers software system to the buyers software system.  One system will have many advantages over managing two separate systems.  In this case, the "value" of the sellers system was low as the intent was to move important and relevant data off the sellers system and into the buyers current system.  What is most important here is the ability to export the data needed to be imported into the buyers system to continue operating as normal.

In another case, a client has manual processes, non-integrated systems for quoting, accounting and costing and many Excel spreadsheets.  The emphasis here is on people verses systems and technology.  The client mentioned that the end game is to sell the company but if someone wanted to continue operations as is (verses merging into an existing company like the first example), the client wants to get the most "value" out of the processes, procedures and systems already in place.  This client has looked at the return on investment in new integrated software not only for the short term but also long term value in not only the client base, revenue the company can generate, the people that make it happen but also the value in the processes, procedures and systems that support the success and keep it efficient and cost effective to run.

When evaluating new software, don't forget to consider the short term return on investment but possible long term return on investment when you sell the company.