Business Brokers - Sell Business - Business Sales and Acquisitions - SunbeltNE

Listing your company for sale is one of the hardest decisions you will make. After all, you must have put in many days and nights of dedicated efforts into it and letting go of it is a tough call. Having worked hard to bring your business to a certain level, you would also want your company for sale to go in the right hands. Selling to the wrong person or botching up the selling process can seriously jeopardize your business. So here are some of the common errors of selling a business that you can keep in mind when you put up your company for sale.

Expecting the wrong price

Most business owners make the mistake of either over-pricing or under-pricing their business when they put it up on the market. A potential buyer will examine your company for sale through its profitability, turnover and future potential and then determine the price he/she is willing to pay for it. Over-pricing your business will put off the buyer even before you reach the negotiations stage. Under-pricing, on the other hand, will create unease in the buyer’s mind as to the feasibility of the business for sell, and will delay the whole process even more. Work with a business broker to determine the true value of your business and prepare yourself for the price to expect for your company for sale.

Selling at the wrong time

The past two years have been the toughest in recent times, with buyers reluctant to part with their money even for a viable company for sale. The timing for selling your business is one of the most important factors in closing a deal. You should also keep in mind that selling a business when it is incurring losses is a bad idea. You should, in fact, consider putting up your company for sale when it is at its peak and profit levels are the highest. That way, you can negotiate effectively and obtain a good price for your business for sell. Keep the idea of selling your business in mind always, so that you can grab the right opportunity when it comes by.

Insufficient financial documents and information

You need to help a potential buyer to make a decision about your company for sale. For that, you need to have all financial information at hand so that when the buyer needs it, you can provide it immediately. Such prompt action will help the buyer analyze the business for sell quickly and make a decision. Lack of such important documentation is an immediate deal killer for most buyers. Ask your business broker for a list of all documents you need to keep ready before a buyer visits you on-site.

Selling in haste

You may be tempted to accept the first offer you get. However, making the decision in haste is a bad idea. Ideally, you should have multiple offers on hand so that you can negotiate strongly and get the best price for your company for sale. Consider all the offers you have with your business broker’s assistance and then decide on the best one of the lot.

Not using a business broker

The guidance of an expert business broker will go a long way in closing a successful deal. By not using such an experienced professional’s services, you risk elongating the business selling process and selling to the wrong buyer. Moreover, the business broker can focus totally on selling your business while you carry on with the everyday business activities of your company for sale. The commission you pay to the business broker will be totally worth it when you hand over your business to the right person.