Here are 3 mistakes that could cause serious trouble for business owners looking to sell.
Mistake # 1: Poor record keeping
Poor record keeping comes at the top of the list of mistakes that business owners must correct. When conducting due diligence, if the buyer has trouble locating core information about the business’s revenues, sales, assets, and debt obligations, it’s likely to disrupt and delay negotiations. Even when the information is all there, but it’s poorly organized, a buyer may have second thoughts. Poor recordkeeping can be a sign of weak management, systemic issues that may show up in other parts of the business, or even fraud.
Mistake # 2: Improper valuation
The next potential mistake that business owners need to avoid is a bad valuation of their business. Indeed, when you sell your business, you need to get a fair estimate of its value. Many sellers skip this evaluation process and it costs them in the end. Invest your money in a complete analysis of the value of your business by choosing consultants with a good expertise in the field.
Mistake # 3: Selling when sales are declining
Too often, sellers wait until the last moment to sell their business. Keep in mind that the most attractive companies on the market are the growing ones. If your business is experiencing a positive trend in income or profits, do not wait until conditions change before you start the selling process!
In order to avoid making mistakes that could be costly when selling your business, a great way is to work with professionals who will guide you through the process. Contact our team now and get the most for your business.