The sale of your business can only happen once, or unfortunately for a number of owners, not at all.
The sale is a complex process and needs to be managed carefully for a successful and rewarding outcome. The Australian Institute of Business Brokers (of which I am a member) confirms the sale of businesses continues to be challenged by finance, vendor price expectations and economic conditions, but on a positive note there is increased buyer activity.
These challenges are impacting on the timeframe to sell making it even more important that your Business Broker is working smarter and harder to complete a sale.
But don’t fall prey to the 3 myths that can derail or seriously affect a potential sale.
Myth #1 – I Can Sell It Myself
Many owners believe they’re qualified to sell their business without professional assistance. Selling a business is not like selling a product or service, it is a complex process of negotiation between a buyer and seller, landlord and their advisors and may continue for many months.
Selling a business takes more than just an advert on a website, all that does is get the phone ringing; the challenge is what you do with the buyer once you get the call!
Myth #2 – I Know What it is Worth
Some owners will base the company value on what they need for retirement, what they owe the bank or the opportunity it holds for the new owner. A third party market appraisal will involve a thorough analysis of the business and the market it operates in to establish the fair market value, which is not always lower than the owners original expectation!
Myth #3 – I’ll Sell When I’m Ready
Certainly an owner wants to be sure they are mentally, emotionally and financially prepared to sell. But personal readiness is just one factor. Economic factors can have a significant impact on the sale of a business.
We currently do not have enough businesses to offer the increased buyer demand, while you may wish to hold on for a few more years, it is predicted that all the Baby Boomers are doing the same, which will result in an oversupply in the next 3-8 years.
The market may not be ready when you are.
Don’t blow the biggest deal of your life; surround yourself with a team of professionals to ensure you get what you deserve.
Author : Linda Harley ,Published in The Profile Magazine April 2012.