Avoid These 4 Costly Mistakes When Selling Your Business

Continue reading to learn these 4 Costly Mistakes When Selling Your Business.

1. Failure to Strategize: A common error when selling a business is delaying and neglecting to create a comprehensive plan in advance. The sales process can span up to 2 years, underscoring the importance of strategic planning. Maintain detailed records of your business history and ensure your documentation is up to date, including a comprehensive sales portfolio.
2. Choosing the Wrong Representation: Selecting the right merger and acquisition advisor is more critical than many owners realize. Rushing to choose the first M&A advisor you encounter often leads to less-than-ideal outcomes. Invest time in finding an advisor tailored to your business needs. This investment pays dividends in terms of both cost and time saved in the long run. During the advisor selection process, inquire about their approach to business sales and their existing leads.
3. Misjudging the Sale Price: Setting a realistic sale price is essential for both you and potential buyers. Consider various factors such as industry trends, comparable businesses, economic conditions, and market dynamics when determining the price. An M&A advisor can provide invaluable insights into pricing your business appropriately for sale.
4. Selling to the Wrong Buyer: While the initial offer may seem enticing, it’s not always the best fit. Prioritize selling to a buyer with access to capital and leadership skills. Failure on the buyer’s part to drive business sales post-acquisition can impact the proceeds from the sale that were intended for your pocket.