If you’re an established business owner in your 50s or 60s, it’s possible the concept of retirement is a recurrent thought. And that’s okay! You’ve worked hard your entire life, and the time has come to take it easy, relax and enjoy.
Selling a company is the first step towards your retirement stage. Unfortunately, many small business owners aren’t fully aware of how to properly sell their businesses and they end up finding themselves in serious financial trouble.
If you’re going to sell your business, be sure to avoid making these common mistakes:
Not finding out how much your business is worth
One of the most common mistakes business owners make is not having their company properly valued prior to placing it on the market. You can look at your rough estimates and financial numbers, but until you have a clear idea of exactly how much your company is worth, you should refrain from placing it on the market at all. This might extend the process but it will be worth it.
Accepting the very first offer given to you
Another common issue business owners make is wanting to get out right away so they take whatever initial offer is presented to them. That first offer, however, could be the worst one of many — so it’s best to hear multiple offers and select the best one. At any given time, there are at least 15 prospective buyers on the market for every single business listed for sale. Don’t just sell your business to the first buyer, sell it to the right buyer.
Doing everything yourself
Even if you’re very knowledgeable about your company and its worth, it’s still going to be difficult to get the best possible offer if you’re doing it all yourself. You need to work with trusted business brokers who are experienced with multiple business acquisitions. This is one of the most important decisions of your life so it’s best to not go at it alone.
If you are preparing to sell your business and want to consult with a professional business broker, you should contact Aberdeen Advisors today.