If you’re a small business entrepreneur, deciding to sell your company is the culmination of many years of hard work. Building a successful brand isn’t easy, so you’ll want to make sure that you reap the reward for all those late nights and early mornings.
But divesting yourself from a company involves a lot of potential obstacles. If you want to make sure you don’t regret your decision, here are four mistakes you’ll want to avoid.
1. Rushing The Process
Once you’ve made the decision to sell, it can be tempting to want to divest yourself of the business as quickly as possible.
But pushing to close a sale too quickly can put you in a weak negotiating position, and can cause you to accept a lower price than your company is worth. It can also lead you to rush through the valuation and due diligence that is such an essential part of a responsible divestiture process.
2. Selling To The Wrong Buyer
Finding the right buyer is almost as important as settling on the right price. If you want the person or group that takes over from you to do right by the brand you’ve spent years building, then taking the time to get to know the interested parties and evaluate their competence is essential.
If you’re having a hard time attracting interest in your business, you might need to put more effort into marketing the sale through blind listings. You may also want to work with a broker to identify and reach out to ideal buyers.
3. Going It Alone
Selling a small business is a serious undertaking and not one you should try to handle on your own. Working with a business broker like Beacon Mergers & Acquisitions is a great way to get the advice and support you need to handle every step of the process, from valuation to negotiation to finalizing the sale.
A certified business broker will give you access to a team of people with specialized expertise in every area of business selling, empowering you to get the best deal possible.
4. Being Inflexible
While it’s important to be firm about what you’re willing to compromise on when divesting yourself of a business, you should also bear in mind that every negotiation involves compromises. The coronavirus pandemic has had a significant impact on business divestitures, and if you want to close a deal sooner rather than later, you’ll need to be responsive to the needs of potential buyers.
One of the main advantages of working with a business broker during the pandemic is that they can advise you on when and where you should be flexible with buyers. You may not get everything you want out of the sale, but when you work with a brokerage you can be confident that the agreement you arrive at is the best one available.
Selling your company gives you the opportunity to translate years of business growth into one big payment you can use to fund your retirement, invest in other ventures, or simply reward yourself for all your hard work. Taking your time and working with a brokerage are the best ways to ensure you settle on an agreement you can be proud of.
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