Sell Your Business in Dallas, TX without Making these Mistakes
Dallas, TX has a flourishing business market thanks to the mushrooming tech companies in the region. Since acquisitions and mergers tend to be very frequent in the tech industry, we witness many buying and selling activities throughout the year. If you want to sell your business in Dallas, TX, you actually have a lot of lessons to learn from those who have “been there, done that.”
As known business brokers in Dallas, TX, we are part of many such selling and buying activities. We have closely studied what went wrong and what went right, and we consider it our responsibility to share our experiences with you when you want to sell your business in Dallas, TX.
So, without further ado, let’s take a look at four mistakes you should avoid when you are considering selling your Dallas, TX business.
Ignoring Your Own Business
When you decide to sell your business, know that it is not an overnight process. It may take months and even years. This whole period can take a toll on your senses and you may end up ignoring the cash cow. Remember that the due diligence process will go a long way and the buyer and their representatives will look for an opportunities to negotiate a lower price. And if the dip taken by your Dallas, TX business is too big or too obvious, it can actually get the deal canceled, leaving you nothing but a bad impression and a poor business to deal with.
Sellers tend to ignore their business due to many reasons. The whole idea of selling something they have invested so much in can be emotionally disturbing. Also, they may lose interest because they may not feel like it’s their responsibility anymore. It could also be because the process of selling a business itself requires a lot of attention.
This is one of the reasons we stress the importance of letting professional brokers handle the whole matter on your behalf. This way you can sell your business while giving it undivided attention that it needs until the new owner takes charge.
A Price Tag Too Inappropriate
If you want to sell your business, the first thing you need to know is its actual worth. It may sound a bit irrational, but many businesses in Dallas, TX tend to think their business is worth much more than it actually is. They put an unrealistically high price tag and refuse to negotiate. This rigidity results in lost opportunities, and many sellers end up selling their business for much less than they should have.
Similarly, it is equally ridiculous to sell your business for less than it’s worth. There are many reasons, sellers ask for an unfairly low price. They may not have any idea of what the business’ actual worth is or they might think that there are not enough buyers for their business in Dallas, TX. There are many criteria that go into business evaluation and we have discussed them in detail in other posts.
The bottom line is: you need to know how much your business is worth in order to set a justifiable price tag that will attract the right buyers in the least possible time. When you decide to sell your business, make sure you have hired professional valuators to help you decide the asking price.
Choosing the Wrong Buyer
This is an interesting one! Who do you think is the best buyer? Naturally, we are inclined to believe that the highest bidder is the best buyer. However, it is not always the case because when you sell your business, you may not be getting all the money right away. In Dallas, TX, the contract typically involves several payments down the lane.
Such extended contracts tend to be in seller’s favor, unless you sell your business to someone who lacks the aptitude to run and manage it. Now imagine what will happen if the new owner fails and the profits go down the drain in the next few months. There will be no money to pay you.
That is why you should be very vigilant about who you sell your business to. Invest some time and resources into knowing that person and their previous experiences with businesses. If need be, don’t overlook the importance of hiring a broker to help you find a perfect match for your Dallas, TX business.
Not Finding the Right Representation
Many business owners fail to realize the importance of the right representative, mainly because they don’t realize what a professional broker can do for them. When you sell your business, it is not just about finding a seller. The process starts from evaluating your business and understanding whether selling your business really is the right option or not.
A professional broker not only helps you in evaluation and due diligence, they also help you negotiate the terms and price. You may lack the legal prowess it takes to prove that your price is fair, justified, and in the buyer’s best interest as well.
Instead of going with the first person who offers help or a broker that suggests the highest price to demand, go for a reputable firm with an excellent track record. Go for someone who is trust worthy not just for sellers but also buyers in Dallas, TX.
As business brokers in Dallas, TX it really hurts us to see how many, business purchase and acquisition deals fail just because of a minor mistake on seller’s part. We try our best to educate buyers and sellers and to help them close a successful deal. If you wish to sell your business while avoiding all common pitfalls, let us help you with the whole process.