mistakes to avoid when selling your business insufficient preparation

Common Mistakes To Avoid When Exiting A Business – Insufficient Preparation

Posted on September 26, 2013 · Posted in Blog

mistakes to avoid when selling your business insufficient preparation

This first mistake may seem somewhat obvious and self-explanatory, but many business owners simply are unaware of the difficulties and roadblocks they inevitably will face unless they prepare ahead of time.

Preparing a business often takes years to position for a successful exit. This includes, but is not limited to:

  • Making certain company financials and tax returns are in order,
  • Making sure licenses, leases, customer and vendor contracts are all in order,
  • Getting a benchmark valuation to establish a realistic market value,
  • Seeking the advice and services of professionals (we will touch on this later),
  • Resolving staffing issues and preparing the management team for the owners exit,
  • Establishing acceptable terms in the current market
  • Having a strong, clean internet presence and reputation
  • Being emotionally ready to let go
  • Having non-compete or non-solicitation agreements in place

As you can see, adequate time and effort is required well in advance. It is almost never feasible to try and tackle all these at once immediately prior to or during the exiting process (you still have to run your business after all). Unfortunately, exiting a business it not as easy as putting a “For Sale” sign up, nor can one expect buyers to come knocking on the door with an offer that can’t be refused. Owners have to take the necessary steps to make the business presentable so that potential buyers can more easily recognize the true value.