When it’s time to put your business on the market, there are a few important yet common seller mistakes that can cost you money, hurt your brand’s value, and hinder a successful closing process. Certified Appraisers wants Houston, TX, company owners to know these mistakes are avoidable, so long as you know how to engage in a sale effectively.
Top Errors Made by Business Sellers
Jumping in Too Quickly
Resist the urge to sell if you’re not committed to the idea yet. Instead, make sure you’ve invested in the growth of all areas of the business, including marketing and advertising, a talented staff, quality product or service lines, and innovative equipment. This builds value and sets the company up to prosper after it’s purchased.
Forgetting the Broker
Your broker is a critical part of a successful sale. Don’t forget to invite them to all meetings, including tours of the company grounds with buyer prospects. Since the business broker is experienced in controlling and directing sales, they can help you obtain prospect information, discuss the price with interested buyers, and enforce written offers.
Expecting Too Much
Some sellers expect too much from their sale. This includes wanting a buyer to pay for elements of goodwill, such as loyal employees or existing customers, when the earnings associated with these areas don’t meet the new owner’s needs. It’s also improper to expect all cash. Seller financing is typically 25-40% down, with the balance paid over the next three to five years. Finally, don’t anticipate a single-day sale. Most companies close within four to eight months. How quickly this process goes is highly dependent on your business’s location, industry, profitability, price, and sale terms.
A seasoned broker will ensure all offers and counteroffers are made in writing. If the price is not acceptable to you, they can issue a formal reply to avoid any misunderstanding or confusion. This will also aid in quickly finalizing a transaction.
Selling a business is an intricate process. Partner with an experienced appraisal team to get the highest figure for your company. To discuss a sale with Houston’s experts since 1974, call Certified Appraisers at (713) 680-3290. For information about their commercial building and restaurant appraisal process, visit their website or follow them on Twitter.