When it comes to selling your business, there’s a temptation to rush through the process and get your money, or to avoid getting emotional. However, this could see you losing out on the true value of the business when it’s sold. Blow, we explore the mistakes you should avoid when you decide to sell your business.
Lack of preparation
Your business can benefit from a little love and attention before you attempt to sell it. Make sure your records are all perfectly organised and try to keep personal expenses to a minimum in order to present the business in the best possible light. At the same time, you’ll need to sort out any pending litigation to ensure that there aren’t risks for potential buyers.
Giving the impression that you don’t care about the business can be a problem. Buyers want to see your motivation and interest in the company until the final moment. They might be hoping to consult with you or get advice after the sale, or they might just want to see that this is a business worth buying. Either way, you should stay engaged until the deal is complete.
Selling too quickly
Unless you urgently need the money, you shouldn’t sell your business immediately. To get the best offer you’ll want to attract a range of buyers to compete, or you might just need the time to survey the market and work out a valuation. Selling at the first offer, no matter how tempting, prevents you from doing this.
Waiting too long
At the same time, waiting too long can be a problem. The longer you wait, the more the value of your business might decline, or economic conditions could change. Finding the opportune selling moment is the key.
Try and thoughtfully determine a valuation for the business. If you guess on the high side, you could end up unable to sell your company and it’ll delay the process to the detriment of the price you eventually receive.
Confidentiality is crucial. Any leaks could easily end a deal – ensure that you remain professional about the details of any deal.
Selling your business can be an emotional time. But by avoiding the most common mistakes and by getting advice on selling your business, you should be all set to get the price you deserve.