There are a variety of reasons why a business owner decides to sell their business. When the time comes, there is a choice to sell on their own or hire a business broker. Business owners who decide to sell on their own face 4 common missteps that can result in a less than favourable result.
Working with a professional will help avoid these 4 common mistakes:
Know the value of your business
Depending on how long you have owned your business, the value could have significantly changed since purchase. Value is based on a number of factors such as technology, assets, location, financial statements, industry and many others depending on the type of business. Determining the value on your own can result in leaving out a crucial part of the equation. Having a professional evaluate your business will provide an accurate and competitive price supported by relevant data.
Selling a business is like selling a house.
This statement could not be more false. Evaluating a house and evaluating a business are two very different things. There is a proven formula for evaluating a business that will produce an accurate reflection of what the business is worth. This evaluating is best performed by an individual with experience who can understand and evaluate company data. Pricing based on comparison to a similar business is inaccurate. Value is determined by evaluating many parts of the business rather than comparisons.
Market Conditions don’t matter
Market conditions will always be a factor in determining the value of a business. The market demands are not the only factor but it will be a factor in determining what buyers are willing to pay. Working with a professional who is familiar with the market and market trends, will benefit the sale of your business.
I’ll sell myself to avoid fees
There are times to look for ways to save money but selling your business is not one of those times. Selling your business yourself could come back to haunt you. There are a number of factors that can be overlooked simply due to inexperience. A professional will have all the connections you need to create a solid contract that is a win-win for buyer and seller. You want to be well aware of any issues that could arise before the transaction is complete. A business broker will provide that level of assurance and help navigate the entire process.
AR Business Brokers has a team of professionals to help you through the entire selling process. Selling a business is a big undertaking, therefore, working with experienced certified business brokers is the best way to ensure a seamless transaction. To inquire about our FREE no-obligation business evaluation contact us today. We are located in Mississauga and we specialize in selling businesses in the GTA. Satisfied clients are our greatest achievement – we are always here to help.