1. Not Knowing the Value
It’s likely that some negotiation will take place with the buyer. So, undervaluing your company at the start
could put you at a real disadvantage. Similarly, overvaluing it could deter prospective buyers. Gaining an
independent appraisal could be a key step to ensuring that you achieve a fair price and complete a fast
2. Selling When the Chips are Down
It is tempting to sell a business before it crashes and burns. However, if you are in a position to build it up,
you should take a few months to do this. Once the business is more stable or growing, it’ll be a far more
attractive prospect for potential investors.
3. Getting Desperate
Once people know that you are desperate to sell your business, it puts you in a far weaker position for
negotiations. Likewise, employee productivity can take a major hit. Ultimately, this is a crucial moment in
your relationship with the business. Try to stay positive and keep things running as normal while you allow
your business brokers to do their job.
4. Not Organising the Files
When presenting a business to prospective buyers, all details relating to the business must be organised.
If they are not, it can cast doubt in their mind or make it seem that you are intentionally not offering full
transparency. Profit & Loss statements, balance sheets, and tax returns should be submitted to provide
clarity for the buyer.
5. Using the Wrong Broker
Outsourcing the sale to a business broker is the best option for many reasons, but only if you choose the
right one. A qualified professional that boasts a track record of selling businesses like yours - in terms of
size and industry - will serve you well.