Selling a business is not as straightforward as you think. There is a lot at stake. To make sure the sale is successful; there are a couple of pre-sale mistakes you should avoid. Top on the list is opting not to work with a business broker in San Diego. The broker plays a crucial role before, during and after the sale. Let’s take a look at some of the pitfalls you need to avoid.
Choosing to go solo Trying to do everything on their own is one of the biggest and the most common mistake business owners make. Although this may help you cut down on the cost which would otherwise have been spent paying a San Diego business broker, you will end up losing a lot more before and after the sale closes.
There are many moving parts in a business sale deal. You have to value your business right, make an effort to increase its value, market to the right buyers; qualify buyers, and so on. Often, all this work will overwhelm you. A business broker can step into the breach. In addition to giving you invaluable advice, he will connect you with the best exit planners, appraisers, accountants and other essential professionals to help streamline the sale. With that in mind, hiring the best team of business brokers should be the first thing that you do.
Having misguided expectations As a first time business seller, it is common to have expectations that are unrealistic. This happens to most people. Most people believe that their business is worth much more. What they fail to understand is that there are several factors that determine the value of a business and not just the profits it is making. As a result of the misguided expectations, most buyers end up being disappointed upon realizing that they overpriced their company.
It is important to have the right expectations during preparation. You do this by looking at the recent sale of businesses that are similar to yours, getting an accurate valuation report from a professional and liaising with a business broker to know what to expect before, during and after the sale. This will give you a more realistic insight.
Not getting the timing right Your timing will determine the much you get from the sale and how fast you end up selling your business. A San Diego business broker will help you know when it is the best time to sell. Additionally, even when the economy is strengthening, you have to put yourself in the shoes of your buyers. At times, waiting or compromising just a little bit can help you close fast and at the best possible price.
Spending little time on preparation The preparation stage is the most important step in the sale of a business. Don’t be in a hurry to close the deal. The minimum preparation process will take you about six months. Great preparation, often with the help of a broker, increases your earnings often by improving the competitive position of your company.
You have to avoid the four mistakes if you want the best deal from the sale. Approach exit planning systematically and always involve professional help.