BUSINESS SALE MISCONCEPTIONS
Updated: Oct 13
After working with countless business owners to help them achieve a successful top dollar sale of their company and unfortunately after watching many business owners choose to go a different route which end in the failure to sell their business, we've noticed their some some fairly common misconceptions about how businesses are sold, especially when it comes to the process of their business own being sold. Let's discuss some of these mistaken assumptions and bow to avoid them.
Many business owners believe that when they decide to sell, the right buyer, possibly an employee or acquaintance will just show up, be thrilled about the opportunity, and make them an irresistible offer.
Another common misconception is that selling a business is easy-peasy, quick, and painless. Many owners equate selling a business to selling a house, a process they are more familiar with and qualified for. They believe they can get it done themselves, For-Sale-By-Owner with maybe a little help from a business attorney.
A majority of business owners also believe that the value of their business is based strictly on to the company's past financial performance combined with the company's assets.
A final misconception commonly held by business owners contemplating a sale, is that, based on their industry experience and contacts, they are fairly certain who the best qualified or most likely buyer will be.
Based on our experience, the reality of selling a business is quite different. Successful business sales do not happen passively. Getting top dollar requires hard work, dedication experience and finesse. It requires a game plan that can take months if not years to develop and implement.
A company's value is both subjective and objective, not based solely on hard assets and past financial records. Buyer's are analyzing past performance to gauge the company's future potential. Simply put: they are buying your company's future, not its past.
Most likely the ideal buyer for your business will be someone you never expected, you never heard of and never imagined. Trying to sell your business without a professional business broker or M&A specialist could cost you a fortune. By taking your focus off running your business and trying to sell it yourself, your company will suffer and your odds of a successful transaction will diminish.
The best time to start working with a Certified Exit Planner is when you first start your business, so you can grow your company with the end goals in mind. The second best time to meet with a Certified Exit Planner is now, today. Dream Business Brokers offers free exit planning consultations to discuss your goals and develop your strategy to maximize your exit return on investment.
So avoid misconceptions when planning your big exit and achieve top dollar for the sale of your company. You have worked too hard to deserve any less. Contact us today for your free Certified Exit Planning Consultation including a 40-page exit planning assessment report custom crafted to your business needs and goals.