Business owners are extremely business savvy but that doesn’t mean they should try to sell their own business. Many assume they are the best person to market their business because they know it inside out. This couldn’t be further from the truth. In order to sell a business successfully, business owners should assemble a qualified team to help them.
While a business for sale transaction seems relatively straightforward, it is anything but. Here are just a few of the things that can go wrong when business owners try to sell on their own.
- The business is priced incorrectly and does not attract qualified buyers.
- The business sells for far below its actual value.
- The business never sells.
- The business owner spends countless hours screening buyers.
- Confidential business information is compromised.
- It is determined well into the deal that a potential buyer does not have the financial means to purchase the business.
- The transaction is drawn out due to delays caused by other parties such as partners, accountants, or lawyers.
- Business operations are interrupted due to lack of owner attention and the value of the business decreases.
- The required tax and legal documentation are not properly prepared.
- The terms of the deal allow for significantly delayed payment.
- Payment never comes to fruition due to a poorly executed deal.
- Due diligence is not completed properly, leaving the owner open to future liability.
- The deal results in significant tax liability.
- Conflict arises between the business owner and the potential buyer.
- The landlord prohibits the lease transfer.
Those are just 15 of the countless things that affect almost every business for sale transaction. Simply dealing with one or two of these issues could take up hours of a business owner’s time and still cause the deal to fall apart. When selling a business, the number one way a business owner can ensure success is by working with a qualified business broker.
One of the biggest mistakes that business owners make is waiting far too long to start planning for the sale of their business. The whole process can take upwards of two years and there is really no such thing as starting to plan too early. When you work with Acuity Business Group, we help sell your business by providing support and expertise including:
- Identifying the best time to list your business for sale,
- Coaching to help improve the business and increase its value,
- Conducting a thorough and expert assessment of the value of the business,
- Creating and implementing a marketing strategy designed to attract qualified buyers, and
- Helping you prepare a successful exit strategy.
If you have a small to mid-sized business in Western Canada that is consistently achieving annual sales between $500,000 and $5M, then we can help you start planning for the successful sale of your business. Contact us to discuss your business goals!