Musts to avoid when selling
- January 22, 2021
- by Wendy Treacey
Musts to avoid when selling:-
Don’t be greedy – buyers look at many businesses before buying and can be knowledgeable in their chosen industry. Offering a reasonable price and terms will get prudent buyers attention.
Logical reason for selling – after the buyer asks ‘how much’ the next question is inevitably ‘Why are you selling?’ The reason must be logical to the buyer.
Trying to sell without proper financials – up to date, complete records and proof of profits should be clear and readily available. 3 years are the usual requirement of potential buyers.
Keeping the business in good repair – neat, organized and well operated businesses sell!
Forgetting the landlord – landlords can be real ‘deal breakers’. Prepare your landlord for the sale, also buyers need to know if the lease will be assigned or a new lease will be negotiated.
No list of assets – buyers want to know what they are buying before making an offer. An up to date asset list should be available.
Understanding restriction of trade after sale – buyers want to be sure they will not be competing with you for the same customers in your industry in the future.
Not making full disclosure – buyers do not like surprises, this destroys trust and can send them running to another opportunity.
Shutting off after sale – many buyers are first time business owners and will need training to get to know their new business. With small businesses at least 2 working weeks are required for vendor assistance. Experienced buyers may need less time to familiarise themselves with their purchase.
Not seeking expert assistance – listing with an experienced business broker takes away a lot of the angst and time involved in selling a business, leaving you free to continue running your business until a suitable buyer is found.
Thinking of selling – think of Progressive Business Brokers!