Top mistakes you should avoid when selling a business

Sep 13, 2019 | Small Business Tips

A lot of business owners rush into the selling process, without proper preparation before listing their business for sale. Here are the mistakes you can avoid when working with Gallagher & Krich, APC.

Bad timing
Decide when you want to sell your business and prepare it for that moment. Put your financial documentation in place, make sure your business is profitable, and deal with staff,
lease or any other legal issues.

Aversion to hire professionals
You might think you save money, but you actually give up all the benefits professionals – brokers, lawyers, financial consultants – can offer:

  • Prepare and run the sale process, from the financial and legal point of view;
  • Mitigate the risk of misrepresenting your business;
  • Maintain strict confidentiality – if the word gets out, the sale will negatively affect your employees, but also sales.

Rushed valuation process
Setting the price, before evaluating your business, increases the risk of being disconnected from the real market prices. Let the professionals conduct a thoughtful valuation and provide you a competitive position in the market.

Refuse pre-qualification of buyers
Sensitive information about your customers or pricing strategy might get in the wrong hands. Lawyers protect you with non-solicitation and confidentiality provisions and check the viability of potential buyers.

Failure to plan the transition process
Get your energy! The transfer work could take, on average, a few months. Also, there are forms and papers to be filled in: to announce the state about your withdrawal, to stop paying any future taxes, and to inform your partners and clients about the change.

Play smart if you want to sell your business. Contact us today!

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