Avoiding Mistakes and the Risk of Bad Deals When Selling Or Buying A Business

In this article I want to help you navigate around the risks and avoid the mistakes that many people make.

Buying And Selling Businesses

Selling or buying a business is an involved and often a complex transaction. You shouldn't underestimate the time and effort required to settle a good deal for both parties. Without the right knowledge, business owners risk leaving money on the table, making costly errors, or missing out on opportunities.

I can't emphasise enough the importance of always having your business "ready for sale". The lack of preparation can hinder the sale process and potentially lead to unfavourable outcomes, as I've witnessed with a business owner who couldn't get brokers to return their calls.

Getting the critical steps wrong – such as valuation, due diligence, financing, negotiations, and closing the deal – can lead to bad deals, under or overvalued transactions, and financial headaches.

Consequences for Sellers:

• Risk not getting the right price for their business if they don't understand valuation methods

• May struggle to attract quality and serious buyers if their business isn't presented attractively

• Navigating the legal and financial aspects without proper understanding can lead to mistakes and a less favourable sale

• Unable to get a good business broker interested in selling the business

Consequences for Buyers:

• Buyers may end up buying a business that isn't worth the price if they don't understand valuation methods

• Insufficient due diligence can lead to hidden surprises and a bad investment

• Poorly structured deals can fail to protect the buyer's interests and increase risks

The Solution - Preparation and Expert Guidance:

Preparation, education and assembling an expert team are crucial to making great deals. My podcasts, blog posts and 'in person' workshops encourage business owners to "build a business as though you are going to keep it forever but could sell it tomorrow". This proactive approach ensures the business is always in a saleable condition, potentially leading to better offers when the time comes. Remember, a business that's ready for sale is well worth keeping and gives the owner options!

Resources To Get You Thinking

There are way too many things to include in a single article like this, so please start by checking out some of my resources and consider attending my next live workshop "Everything you need to know about buying and selling a business but didn't know to ask!"

MY LATEST BLOG POST ARTICLES
MY PODCAST LIBRARY
SALEABILITY QUIZ - A 3 or 4 minute quiz which gives you a personalised saleability rating and tips
LIVE "IN PERSON" WORKSHOP - Includes a 1-hour private consult at a time to suit you

My workshop is a first step in the "solution" to the problem of navigating business buy and sell transactions without the necessary knowledge. It aims to equip buyers and sellers with the tools, strategies, and insider knowledge needed to confidently complete a deal. Key areas covered include:

• understanding valuation

• Increasing the value and saleability

• preparing for sale / purchase

• conducting due diligence

• mastering negotiation tactics

• understanding the legal and financial aspects

• assembling an expert team

Final piece of advice for this article "Please don't start the selling or buying process until you know what you are doing and you are well prepared".

I'm available for a quick chat if you want help to get started. Just use the BOOK A CHAT button. Interested in attending my live workshop then use the DETAILS & BOOK button.