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!

Latest News & Updates

Meet Our San Diego Attorneys

Thomas F. Gallagher, Esq.

Partner

(858) 926-5797
tom [at] tomgallagherlaw.com

Troy B. Krich, Esq.

Partner

(858) 926-5797
troy [at] tomgallagherlaw.com

Contact Gallagher Krich, APC

What Clients Say:

Mike K., Google

August 11, 2023

Thank you so much for all your help in resolving a real estate matter so quickly and efficiently.

Mike K
Verified

What Clients Say:

Veronica D., Yelp

October 17, 2023

We had the pleasure of speaking with Troy for a contractor issue we had recently. He is smart, patient, empathetic and basically the lawyer we would want to be our side for (may God forbids) any legal assistance or battle we need! The interaction we had with him was “free of charge” but we already felt his dedication and concern (he took the time to reach out and follow up on how he can assist us further) which busy lawyers would normally ask their admin or assistant to do so on their behalf. We will be sure to contact again Troy, if need be! Thank you!!

Veronica D

What Clients Say:

Daniel E., Google

October 11, 2022

I left a voicemail for Tom late Sunday evening and received a phone call first thing the next morning.

Tom was very quick to reply to any questions I had, and if he was caught up in a meeting, he was sure to return my call promptly.

Tom provided sound and logical advice, during a very stressful and uncertain time. At times I asked him to be more aggressive and was often met with the pros and cons of that decision, allowing me to understand the approach and thought process behind his strategy.

Ultimately he provided options for several paths for us to take, worked swiftly, and got us where we needed to be.

He reached out several times to check on my sanity and make sure I was good.

As someone with very high expectations, I would highly recommend his services. He provided expertise that proved to be successful, and also took the time to make sure I was emotionally solid.

Tom assisted with me with a 50% / 50% ownership conflict.

Daniel E
Verified

What Clients Say:

Deanna, LawConnect.com

February 23, 2022

Really informative and actionable, very grateful to have connected and I look forward to working more with them in the future.

Deanna
Verified

What Clients Say:

Marilyn, LawConnect.com

February 8, 2022

i liked that a lawyer, and not a staff member, called me to get the details and he gave me his opinion of what his initial thoughts are about my case.

Marilyn
Verified

What Clients Say:

Bob W., Google

August 30, 2021

What was thought to be a simple breach of contract turned into a nightmare. Through their tenacity and their deep knowledge of the law, we were successful. There is no reason to look any further as you will not get any better representation than this firm. I highly recommend them and strongly suggest that if you are considering starting a business or are already managing one, this firm will guide you, avoiding the troubled waters businesses sometimes find themselves in.

Bob W
Verified

What Clients Say:

Rasmita M., Google

August 13, 2021

Johnny Nitti helped us with our estate plan. He was very meticulous while drafting the plan and spent enough time to explain the details to us. He filed the deed with county recorder and paid for the fees himself. Overall, Johnny did a great job and we definitely plan to work with him in the future for any updates to our EP.

Rasmita M
Verified

What Clients Say:

George A., Google

August 6, 2021

Johnny Nitti helped me with my estate planning (will, living trust, etc.) and made the process smooth. He is very responsive and organized. I highly recommend contacting Johnny.

George A
Verified

What Clients Say:

Ashley C., Google

July 18, 2020

Tom Gallagher is very knowledgeable and helpful when it comes to business law. I reached out to him reguarding the Pandemic and my salon and I’m so glad I did. Many times stress and hard times can fog clarity and he really helped me understand the laws.

Thanks Tom!!!

Ashley C
Verified

What Clients Say:

Evan D., Google

July 16, 2019

Thank you Troy for everything! Professional, prompt, and smooth handling of my case. I will be recommending to anyone that is in need of a lawyer.

Evan D
Verified