Mistakes to Avoid When Selling Your Business

Mistakes to Avoid When Selling Your Business

You’ve worked hard to develop your business successfully, and now it’s time to sell.  The process of selling your company may seem daunting with decisions to be made and lists to complete. However, it doesn’t have to be. The key is planning. It’s never too early to start planning to sell, whether you plan to sell next month or next year. Continue reading for mistakes to avoid when planning to market your business. 

Pricing

One of the most challenging parts of a sale is to determine the correct value for a business.  It is understandable that after spending so much time and money to grow the business, many sellers would like to get the highest price when they sell.  The right buyer could be turned off by exaggerated business pricing.  In contrast, an excessively low appraisal could result in a loss of money. 

For almost every sector, you can find online valuation calculations, and while these may provide a decent ballpark figure, they are not going to be entirely accurate. Many elements are involved in appraising a business, including statements of profit and loss, intellectual property, land, and recurring contracts and your region’s economic outlook. Therefore, it is best to work with an experienced broker to assess the correct value for your company.

Experienced Professionals

By nature, business owners are entrepreneurial and frequently take the do it yourself method.  While this is an excellent option, one that has probably contributed to your business ‘ success, using it to sell your business, is perhaps not the most excellent idea.  The process of selling a company is time-consuming, ranging from deciding the price to finding the right buyer and closing the deal. A broker will take care of the logistics while you continue to run your business.

First, your broker should evaluate your business and provide feedback on potential red flags with your finances, the building, or even vacancies for employees.  Again, when selling your company, deciding the right valuation is essential, and your broker will examine all the variables to find the correct value. In South Florida, Sunbelt brokers will help with the necessary preparations to sell your business. Our company specializes in serving buyers and sellers of small businesses across many industry types. We have business experience across a broad range of industries including, childcare, e-commerce, services, restaurants, and health services. For questions and a full list of our services, please contact us at your earliest convenience. 

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