hands off approach mistake when exiting selling a business

Common Mistakes To Avoid When Exiting A Business – Taking a Hands Off Approach

Posted on October 29, 2013 · Posted in Blog

While we highly encourage and recommend that most sellers leverage professionals, do not misinterpret that you can sign away all responsibilities either. Nobody knows the ins-and-outs of the business like you do, and no one will be a better advocate.

Your representatives will try to learn as much as they can about the business, but chances are they are not experts in your industry. Actively refusing to interact with prospects may set off red flags and drive away potential buyers. They may wonder if you are hiding something and using your representatives as a barrier, or even question your motivation to sell in the first place.

hands off approach mistake when exiting selling a business

Despite what many believe, businesses don’t always sell to the highest bidder. Sales with the highest rate of success occur when both the buyer and seller can make that connection and develop trust.  Both parties should be open and honest about their intentions.

Most owners want to see the business succeed after their exit and ensure it is in the right hands after they are gone. Building a high level of confidence between both parties requires active participation from the seller and this is hard to do through a 3rd party middleman.

Hiring a sales representative or broker is a good step, but do not interpret that as the final means to achieving a sale. You can greatly increase your chances of a successful sale by taking a more hands on approach and being the #1 advocate of your business.