The decision to finally sell your business can be exciting and scary at the same time. Are you making the right decision? What if you regret the decision when it is already too late? These are just some of the questions you will find yourself struggling with. The good news is the input of a business broker 92129 trusts can help you verify if your reason for selling is a good or terrible one. In this post, however, the primary focus will be on the mistakes you must avoid when selling a business.
You cannot get up one morning and decide to get your business listed by the afternoon. The fact you need to understand is buyers are very cautious. They are very picky with the business they end up buying. Keeping in mind that there will be a due diligence phase that allows a buyer to comb through every inch of your business, you need to make sure that your business is spotless. A business broker 92129 will advise that you allow at least a couple of weeks or even months to get the business ready.
A business valuation will help identify the strengths and weaknesses that your business has. Having completed numerous sales that are similar to yours, the broker will show you how to prepare the business for sale. This includes the documents you should have, terms you should have on the lease, the debts you should settle and so on. Once you are ready, the broker will go ahead with the listing.
Setting a selling price without knowing the value of your business
The mistake most business owners make is that of assuming buyers will take their word for it when it comes to the selling price. This is not true. Prior to giving an offer, buyers will perform their own valuation. This helps them determine if the business is as valuable as you claim. If the set price is too high, you might end up losing the best buyers. On the other hand, if the selling price is too low, you will end up closing at a loss. Getting a business valuation done is the key to avoiding surprises along the way. Don’t simply assume that your business is worth certain PE multiples without first getting the facts right.
Not getting multiple offers
Last but not least, you must refrain from committing to the first buyer that gives you an offer. Getting competing offers is the key to selling for maximum profit. As you market your business for sale, cast a wider net. You must also get as many offers as you can.