Your company has been successfully operated for many years, maybe even decades, but the time has come for you to consider selling it. It’s possible that your choice was premeditated, but it’s also possible that your health, your family, or some other cause compelled you to make this choice.
Consider selling it yourself if you want to make the most money possible from the sale.
After all, how difficult can it be to sell a business? You locate a buyer, sign a few documents, and then receive a sack full of cash, right?
However, this is not the case. If you choose the incorrect buyer, you risk receiving more than you originally anticipated.
Ignorance is bliss
Consider the case of the restaurant proprietor who had a soft spot for the young couple who expressed interest in purchasing her business. She did not perform any background investigation on them since she liked them, and as a result, they soon transformed her thriving restaurant into a biker bar even though it was tastefully designed.
Her eatery was wrecked, resulting in tens of thousands of dollars worth of repairs after she was forced to sue the tenants for not paying the rent. After four years, she is still working toward rebuilding her client base, but she needs to sell her company.
A prosperous podiatrist was content with selling his practice to the other physicians in training. Still, when they failed to pay the rent, he was forced to fight them and spend over $200,000 in legal expenses to regain ownership of the practice.
Performing research and analysis on the prospective buyer
As a business owner, you likely want to sell your company, and the first severe and interested buyer is the one to whom you sell it, even if you haven’t done any research on them.
If you are holding a note on the company, which means that they will pay you after the acquisition, then you have every right to conduct due diligence on them to understand who they are and what they do.
Employing the services of an expert
Because most owners of businesses have yet to transact the sale of numerous companies before, employing a professional is the most sensible option. Because most experts charge a commission dependent on the sales price, they get paid once the business is sold.
Others will advertise and promote the company in exchange for a retainer fee, which is often reimbursed when the company is sold.
If you choose the incorrect buyer, it will be on your radar for a long; it might cost you far more in terms of time, money, and legal expenses than it would pay a professional, who could cost up to 12% of the sale price.
In addition, because you are focusing your efforts on selling the company, you are not actively working within the company, which may have a negative impact on both the revenues and the profitability. Attempting to market your company is a surefire way to lose money and time.
Smart business owners engage experts, delegate all the laborious work to them, and then direct their attention to growing their company’s income to increase the price they sell their products.