Selling a business is a challenging and complex endeavor composed of many tasks and phases. The complexity of the process increases the risk of making very costly mistakes, so here is an outline of some of the common pitfalls to help you avoid them:
- Not being prepared to invest the time and energy necessary for a good deal – mergers and acquisitions can be time-consuming, preparation and negotiations. Many transactions take several months of intensive work to complete the agreement. Those months are indeed among the most intensive periods in the life of the business, as well as of the CEO;
- Selling the business to the first buyer – when I went to sell my business a broker advised that creating a competitive environment with multiple bidders may complicate the sale, but it is the best way to get a better price;
- Not hiring a legal team with the right type of experience – a general practitioner might not have the correct type of expertise to provide you adequate support during the sales process. The mistake of working with such an inexperienced legal consultant can cost CEOs dearly. Therefore you should hire the best mergers and acquisitions specialist in the area for your transaction.