Thinking of selling your business? Learn from business owners before you and avoid these 5 mistakes in the selling process.
For many business owners, the sale of your firm has been a long time coming. And while you are eager to close the deal and move on to your next venture, it is important that the transaction is conducted carefully and intentionally.
One of the best ways to avoid mistakes in the selling process? Learn from those who came before you! The time, effort, and dedication you put into selling your company now will pay off in the long run.
1. Selling too quickly.
We get it: selling your business can be a pain, and it can be tempting to get the business off of your hands quickly. Financial documentation, sustainable profitability, lease issues, staffing problems, and other concerns should be addressed before getting your company on the market. Solving these underlying issues can greatly increase the salability and margin of your sale.
2. Failing to negotiate.
Some people love it and some people hate it – but that beast “negotiations” will probably rear its ugly head at some point during the sales process. Know your worth and your company’s worth, and be willing to stand up for what you deserve. (HINT: Professional business brokers can come in very handy in this area!)
3. Being unprepared to defend your valuation.
Know where the numbers came from, and be prepared to show how you came to the conclusions you did! After all, anyone can say they have a multi-million-dollar company on their hands, but not everyone can defend that claim.
4. Unwillingness to get professional help.
You may know the business world like the back of your hand, however, having a professional walk you through the process, and advising on the best time to make the sale can be priceless. If you decide to get a broker, don’t forget to choose someone who is right for you and your company.
5. Not preparing the team for the transition.
Even good transitions can be challenging! Ensure that your team is aware of the changes that will ensue, and the timeline that will follow. Furthermore, choose a buyer that prioritizes culture! This will allow for a smoother transition where everyone is happy and comfortable in the new working environment.
Navigating the Transition
Selling a business is not for the faint of heart, but as a business owner, you already knew that! With a little intention and a lot of preparation, it can be a beautiful chapter of your life. If you are interested in learning how iKadre can help navigate this transition, please reach out. There is nothing we would love more than to take this journey with you.