Avoid these Mistakes When You Sell Your Business
Do you want to sell your business? Not an easy job, especially if you are trying to get a good price for it in a reasonable amount of time. You’ll need patience, and ounces of it; selling a business is hard, but don’t let frustration affect you or get in the way of a good deal. And you also need good, effective advice so that you can secure an incredible deal. Kirksey Business Brokers, offering their services in Grapevine, TX, can help you out throughout the process from maximizing your business value to connecting you with potential buyers.
Expect yourself to encounter a number of challenges as you sell your business in Grapevine, TX, but the good thing is that Kirksey Business Brokers can help you avoid these. Here are some of the top mistakes that you may have to deal with. Be sure to avoid these when you sell your business.
Preparing insufficiently
This is one of the most common mistakes which business owners make when they put up their small business for sale. You have to address a number of key aspects, before you let potential buyers in Grapevine, TX, know that you want to sell your business. What are these? Financial documentation, lease issues, staffing problems, profitability, and any other thing that can likely affect your business’s stability.
Why should you be concerned about business stability? Because the more stable your company, the higher price you can get when you sell your business.
Not giving the sale process enough time
The experts at Kirksey Business Brokers, Grapevine, TX, suggest that you should begin preparations to sell your business at least two years before listing the business. What if you don’t have this much time? Then come up with a new timeline that roughly gives you two years or so – because, there is a lot to do, and so you need an ample amount of time.
If you face any difficulties, get in touch with Kirksey Business Brokers in Grapevine, TX, and they will help you out.
Being overconfident
Your business has been doing so well lately, and you are sure that you are going to get an amazing price for it. Confidence is good, but if you go overboard, become too sure shot of yourself and start neglecting essential tasks, you will face disappointment. We’ve seen so many sellers reject a good deal, only because they priced their business on wrong valuation estimates.
Business valuations are determined through quantifiable criteria, so your personal estimation may be too much off the mark. Kirksey Business Brokers in Grapevine, TX, can help you evaluate the true worth of your business. If this is lower than your expectations, then we’ll help you increase its value so that you can get a better price when you sell your business.
Not pre-qualifying buyers
A successful business sale in Grapevine, TX is possible only when you pre-qualify buyers, and pre-qualify them early on in the process. Most of you would not want to do it too soon in fear that you may scare buyers away, but this is a wrong assumption. Truth is that buyers become more engaged when they are involved in pre-qualification. Plus, doing so also ensures that sensitive information about your business does not go into any wrong hands. So, if you start pre-qualifying potential buyers in Grapevine, TX, you will be sharing key sale details with only those who are serious.
Documents such as financial background and confidentiality agreements are essential standards for buyers who want to get access to critical business information.
Misrepresenting your business
When you sell your business, you should portray it positively. But, there is a major difference between being positive and misrepresenting. There would be times when you would really want to punch up the numbers or cover up the issues. But, don’t do any of this because when buyers would review your actual financial statements later on, they would figure out the truth, and can even take legal action against you.
Not pricing correctly
We’ve seen a lot of sellers who give buyers a price on the higher side when put up their business for sale in Grapevine, TX. Why are we considering this to be a mistake? Because price is one of the most important factors that determines how long your business would stay on the market before you sell it off.
However, if you let us evaluate your business, and then price it closer to the number we suggest, you will likely make a smoother and faster sale. Also, you would know the average market prices in Grapevine, TX, which puts you in a better position to defend the amount you ask for.
Considering only all – cash offers
An all-cash sale is not preferable, so if this is what you consider, you will be limiting buyers. Most of the prospects in Grapevine, TX, don’t want to hand away a huge amount of cash, and instead look for different payment options. What benefit does this have for your? All-cash offers are detrimental for taxes. By avoiding them, you spread sale receipts over multiple years, lowering your tax brackets.
Not hiring Kirksey Business Brokers
You run your business so well, but can you sell your business using the same set of skills? Not at all! You should hire Kirksey Business Brokers in Grapevine, TX, so that we can determine the worth of your business, increase its value, help you find potential buyers, finalize the sale agreement and do any other task that is required in the process.
And, by the way, we can help you sell your business at a price 10% higher. One more reason to work with us.
If you hire Kirksey Business Brokers in Grapevine, TX, you can avoid all of the above mistakes. So reach out to us, let us determine a worth for your business, and help you throughout the sale process. We’ll make sure that you get the best deal that there is!