5 Reasons Not to Sell Your Business Yourself
For a business to succeed, you’ve got to invest a lot of time and resources. In the process, you become emotionally attached to the enterprise. Deciding to sell a business is not easy, and most owners try to control the sale. Of course, you know the business better than anyone else and you want to get the best value for your blood, sweat and tears.
However, the biggest mistake you can make is to try to handle this crucial transaction yourself. Despite your success in running the operation, selling the entity requires a new set of skills. It is a long-winding process that can frustrate you and force you to sell short.
In a bid to control the sale, many entrepreneurs miss out on incredible opportunities. They approach it as any day-to-day deal, yet it requires a well-thought-out exit plan.To avoid this eventuality, we’re here to help you design and implement the right exit plan.
Our mission is to ensure you get as much value as possible from this investment. We consult with clients to develop custom exit plans, perfect timing and strategy and advise you on how to value a business. Get in touch today for a less stressful exit plan.
Here are some of the reasons we advise our clients not to sell their businesses on their own.
1. Tedious and Frustrating Undertaking
Some of the reasons entrepreneurs sell their businesses include burnout, big life changes, loss-making, retirement, increasing competition to mention a few. In most of these cases, the investor wants to close the deal quickly and get on with their next phase of life.
Selling a business is a protracted process, and it won’t happen overnight. If you plan to do everything on your own, you might be looking at years of planning, consultations, transactions, evaluations and disappointment. This process will drain you even further, and you might end up selling the entity for a song.
You might end up losing focus on the core business to focus on the sale. There are multiple meetings you have to attend and these demand a lot of your time. In the end, the sale process might frustrate you to the point of despair.
When you work with our team, we remove the hassle from the business sale process by helping draw a clear plan. We work with you to understand your goals and aspirations. How long are you ready to wait? What’s the best value you can take?
After understanding your business, we then draw a custom exit plan which we help you follow. It is a smoother process than taking on everything alone.
2. You might Get a Lower Price
It’s true you know your business very well and hence the urge to represent yourself. After all, you can convince buyers about the viability of the enterprise. But how well do you know about business valuation and factors that might affect the worth of your investment?
A professional business seller might not know about your business, but they can quickly learn and value it for you. They understand market dynamics that can raise or reduce the value of your business. In most cases, entrepreneurs who sell their ventures end up getting a lower price because they’re in a rush.
When you work with a consultant, they have the motivation to sell at a higher price to enjoy a good commission. They will evaluate your enterprise keenly and detail all the strengths they can use during bargaining.
3. Selling Your Business Smacks of Desperation
When a business owner puts up their enterprise for sale, things can go downhill fast. They have no experience in this kind of deal and if they start pursuing interested buyers, it will smack of desperation. The last thing you want when selling a company is to look desperate because the bids will start going down.
Using an experienced consultancy, on the other hand, adds some professionalism to the deal. Only serious buyers will approach the selling agency. The work of the selling agent is to market their clients’ business. From the buyer’s point of view, it doesn’t look like an attempt to offload a non-performing entity.
4. Lack of an Exit Plan is Recipe for Failure
Now that you think selling your company is the best option, how do you even start this process? Have you looked at all the options on the table? Is it easier to merge or diversify your business rather than selling it? All these questions should be answered before you advertise your business for sale.
This is where a selling agent comes in handy. They help design an exit plan that guides the entire sale. An exit strategy includes options such as strategic acquisitions, initial public offerings (IPO), and management buyouts (MBO).
Business valuation is another core component of the exit strategy and ensures you get the best value for your investment. Other critical considerations include succession plan, metrics and reporting, financial performance, marketing and sales strategy, compliance, effective employee management, policies and procedures and much more.
Our team has experience handling all these components of a business exit plan. We work to develop a custom exit plan that suits your goals and aspirations. At every stage, your feedback is critical, and we ensure you own the process. With an exit plan, we empower our clients to maximize the sale and get the best deal.
5. You Won’t Find the Best Buyers
Who are the first people who approach you when you announce the business sale? Most likely, these are close friends, family and competitors. They know your situation and can take advantage to get the best deal. By using an experienced business sale agent, you avoid such buyers looking for a cheap deal.
Your representative will have a better network of potential buyers who might not even be in the industry. It helps close the deal faster and at a better price.
With our streamlined exit solutions, you don’t have to stress yourself over the business sale. We look at every aspect of the sale and detail it in the exit plan. From the exit consultations, business valuation, exit plan, to the timing and strategy, we walk with you. Get in touch with us today and avoid the hassle of a do-it-yourself business sale.