In this article we will take a look at 3 common errors made during the selling process. A seller has one opportunity to get it right. When it comes to selling a business, business owners need to rely on trustworthy professionals..
While attempting to sell their business on their own, business owners have made critical errors. These errors can occur when an owner trusts a relative or friend to help them navigate the selling process. A business owner has also been known to try to broker his or her own deal.
Here are a few common errors made during the selling process:
Don’t Prioritize Confidentiality
Confidentiality is very important. Business owners often share valuable information with the wrong people. They may give information to a competitor. A business owner can accidentally alert suppliers, employees, and customers that their business is up for sale. Unfortunate consequences can result when confidentiality is breached. For example, employees can go look for new work or customers can switch over to work with different businesses. These scenarios can devalue the business or even interfere with a sale going through.
Mistakes In Financial Information
An inexperienced person that is assisting a business owner in selling their business may accidentally omit preparing critical paperwork. It could negatively impact the numbers if the financial records are not properly audited. This could lead to lower offers and less interest from prospective buyers.
Failing To Involve Key Parties
Neglecting to bring key parties into the is another error made during the selling process. When a business owner is trying to handle everything on their own, important people, such as the CFO, might not be brought into the due diligence process. While this error might not kill the deal, it could lead to delays and complications.
These are 3 common errors made during the selling process. When it comes to selling your business, it is important to rely on professionals. There is a long list of protocols and steps that lead to a deal going smoothly. Experienced business brokers will make sure that all the best practices are followed and that you come out ahead in the end.