We have compiled a list of the common mistakes business owners make when they exit their businesses.
1. Bad timing – judging the best time to sell is important to maximise the price received.
2. Not being proactive – waiting for the perfect deal is like waiting to win the Lottery– it is highly unlikely.
3. Not considering all your options – Discuss with your broker the potential target market and the sale options.
4. Being distracted – do what you do best – run the company. Let the professionals market your
business and negotiate the best deal.
5. Not knowing your value – what is your business worth now?
6. Where to next? – An important part of exit planning is answering that question. As soon as you start to think about selling, act on it as you are likely to be distracted and take your eye of the ball and stop running the business with all your energy.
7. Tax implications? – Your accountant should be part of your team implementing your exit plan.
8. It takes time – selling a business is much more complex than selling a house so allow plenty of time. Information has to be assembled, multi-pronged marketing strategies need to be implemented, legislative and tax implications need to be understood, and almost certainly there will be unexpected
roadblocks and challenges before settlement.
9. Hard work ahead- do not get overwhelmed with the task ahead. If you have an experienced team handling the process they will smooth the way and sort the problems.
10. Ensure your listed price is correct- Agents spend a life time educating their clients about value- when you are selling head your own advice.