Even with decades of experience selling and buying investments for clients, you may not have the experience needed to sell your advisory firm. At times, even if you have the experience, you may lack the resources to keep running your business while selling it at the same time. For confidentiality purposes, it makes more sense to work with a business broker for advisory firms San Diego trusts. All in all, even with the involvement of professionals, there are a couple of mistakes you must avoid when selling your advisory firm.
Not working with a business broker
Although selling on your own gives you control over the sale and keeps you from paying brokerage fees, it has major drawbacks. The main drawback of not working with an experienced business broker for advisory firms San Diego trusts is the inability to maintain confidentiality. Even if you use blind ads and require buyers to sign NDAs, people will always associate you with the sale of your business. Within no time, employees will notice and that may cause them to seek greener pastures in fear of uncertain future.
Seeking last minute changes in terms
The worst mistake an advisory firm can make is trying to renegotiate the material deal terms right before signing. Doing so destroys trust and credibility. You have to be decisive as a seller. Don’t change the terms prematurely as doing so will cause you to lose potential clients. Often times, business owners change terms at the last minute because emotions get in the way. Working with an experienced business broker in San Diego will help avoid this issues. Write the key deal terms and share them with your broker. The broker will make sure your wishes are met before any signing.
Failing to understand how deals work
The majority of advisory firm sellers only focus on the price and the payment terms. They fail to understand that buyers will add additional terms. When new terms are added by buyers, some sellers tend to claw back because the deal isn’t going according to their plan. You have to remain open-minded. A business broker will be happy to share information on what you can expect during the sale. They will also help you know what to compromise on in order to get the best deal.
Sharing too much unnecessary information with prospective buyers will ruin the deal. You must have boundaries. For every information you share, you should get something in return. Sharing too much will weaken your negotiating position. Allowing your business broker to play ‘bad cop’ will give you an advantage during negotiations.