22:44
Faizan
There is a lot at stake when selling a business. There are theories constantly doing the rounds about how to go about the decision of selling out your business. And yet, stories about mistakes made during the process of the sale abound. If you're thinking of getting into the process of selling your business, there are several things you can learn from others' mistakes.
Mistake 1: Depending on word of mouth for data and facts
You have invested time and money in your business, worked hard and built it to a stage where you feel it will command the price you ask for, when you sell it. So you talk to your contacts in the market, get in touch with several others who have some idea about the process and go ahead with the sale. While this may work for some people, it will still not lead you to the best deal in town automatically. Also, you still may not know enough about market realities concerning mergers and acquisitions.
Mistake 2: Not putting together a financial plan
If you're banking on market figures to make estimates on the price your business can command, you might end up with far less than what you expected. Many owners have repented at leisure over what they felt was an unfair valuation of their business.
When you take stock of your accounting and finance records, you can draw a financial plan that will help you set more realistic expectations about selling your business.
Mistake 3: Not including expert opinion
Selling a business needs you to have several essentials in place, such as adequate information regarding the market, ensuring your business is doing well and is attractive to investors, putting your accounting and financial records into place for the buyer, etc. Many owners have suffered losses, both in terms of money and peace of mind due to the thought that their business was under-valued.
Mistake 1: Depending on word of mouth for data and facts
You have invested time and money in your business, worked hard and built it to a stage where you feel it will command the price you ask for, when you sell it. So you talk to your contacts in the market, get in touch with several others who have some idea about the process and go ahead with the sale. While this may work for some people, it will still not lead you to the best deal in town automatically. Also, you still may not know enough about market realities concerning mergers and acquisitions.
Mistake 2: Not putting together a financial plan
If you're banking on market figures to make estimates on the price your business can command, you might end up with far less than what you expected. Many owners have repented at leisure over what they felt was an unfair valuation of their business.
When you take stock of your accounting and finance records, you can draw a financial plan that will help you set more realistic expectations about selling your business.
Mistake 3: Not including expert opinion
Selling a business needs you to have several essentials in place, such as adequate information regarding the market, ensuring your business is doing well and is attractive to investors, putting your accounting and financial records into place for the buyer, etc. Many owners have suffered losses, both in terms of money and peace of mind due to the thought that their business was under-valued.
Posted in: business
