Selling your business is the end of an era. You have ridden out the tough times and built the company up to a place where it’s achieving everything it can, and the time is right for you to let go of the reins and move on to new pastures.
There are multiple reasons why people want to sell their business, from falling out of love with it to reaching the end of the line, retirement, ill health, or a change in circumstances etc. However, once you have reached this point, you can encounter some mistakes that can impact the selling experience and the value you get for your business.
Let’s look at this guide to selling your business as I have to start planning ahead with my own business.
Table of Contents
How To Know It’s Time
Thinking of selling your business? Knowing when to sell your business is about timing and circumstances. If growth has plateaued, you’re burned out, or you’ve hit personal or financial goals, consider selling.
Market conditions matter too—if buyers are offering strong deals, it might be a good time. Watch for signs like industry shifts or new competition that could weaken your position.
Another thing to consider is the taxes and taxes in your retirement era. My husband is looking into this for his trucking business, along with regulations that cost more money.
Continually evaluate your business’s value realistically and think about your next steps. You may want to think about this a few years before you retire.
Misunderstanding Worth When Selling Your Business
The market value of your company is based on multiple factors, including financial, future, and strategic value. As a business owner, you need to be confident in the value and worth of your company and not be dissuaded by buyers who will, in their mind, have a figure of what they think the company is worth.
Allowing them to ride over your value and dictate value means you’re being talked out of the best price. Stand your ground, know your figures, and don’t let buyers take over. Talking to business advisors can help you determine the right value to sell for the best price.
Not Knowing Your Buyers
Not every buyer is after the same thing when purchasing a new company, and not everyone will have the same visions and ideas as you had or have for the company. That’s okay.
However, one of the biggest mistakes you can make is not knowing what they want, what your company will mean to them, or what they plan to do. Put yourself in the buyer’s shoes, get their perspective, and you can enter negotiations that will be more beneficial to both parties.
Waiting Too Long To Sell
Do you think you might hold out for the right buyer and discount current offers because you believe something better is out there? This isn’t always the case; much like the wind changes, the economy can also impact your ability to sell.
Various influences will dictate what your money is worth, and if you’re dragging your heels over who to sell to and drawing out the process, the better offer may never come. You might not be able to sell at all. Because the market can change in an instant, and it’s not always for the better.
Taking The First Offer When Selling Your Business
In direct contrast to the above point, jumping on the first offer and not taking your time to get the right deal can be a massive mistake. You might want to sell quickly. However, your company is the product of many years of hard work, stress, and effort, and your negotiations should represent this.
And it would help if you weren’t giving it all up to the first interested party until you’ve scoped out your options. It’s a fine line between waiting and waiting too long, but don’t just jump and accept the first offer, not instantly.
Conclusion: Selling Your Business – What You Need To Know
Selling your business is a huge step, and preparation is everything. Know your numbers inside and out—profits, debts, and assets. Get the right professionals on board, like lawyers and accountants, to avoid costly mistakes.
Be clear about your goals: Do you want a clean break or a gradual exit? Keep emotions in check and focus on facts when negotiating. Start planning early to maximize your business’ value and ensure a smoother process.
