Choosing to sell your business is a significant decision, and by putting years of work into another person’s hands, there are quite a few details to account for.
Fortunately, there is a market to sell businesses. At any given time, there are an average of 15 prospective buyers for every 1 business on the market. So when you are entering a transaction, it’s important to make sure you are covering all of your bases towards finding the right buyer.
Start by avoiding these common business sale mistakes:
- Skimming The Fine Print: Not accounting for hidden details can take a seemingly ideal transaction and make it financially harmful. Make sure you read every word of a proposed contract and take notes. You need to know exactly what you’re getting into.
- Not Communicating Your Expectations: Selling a business is not the time to be passive. Communicate your financial expectations with your advisors and stick to them. This way, you and the buyer can keep the deal as mutually beneficial as possible.
- Skipping Background Checks: Do you really know who is purchasing your business? Take a close look at their financial status and business history. If you can, talk to past partners and employees to see how the business owner operates.
- Rushing In Too Soon: While you might be eager to get the sale going, sometimes you’ll need to slow down. By taking your time while you get started, you can ensure that you are completely prepared. This way, you are in good shape in all of your plans before you begin negotiating.
- Avoiding Negotiation: Speaking of negotiating, businesses for sale rarely stay at one price. Don’t be afraid to work towards finding an ideal selling price. By doing this well, you can land around a price that works towards your overall financial goals.
Remember that the best way to keep your sale organized is to work with a business merger and acquisition firm. A qualified sell-side advisor can work with you to ensure your needs are met, creating the best possible financial situation.
By taking proper time and covering all the details, you can rest assured that your business will be in good hands, and as a result you can move on towards whatever is next on your list.