If you are pondering a significant lifestyle change, and you’re wondering how to sell your business with as little hassle as possible, you’ve come to the right place!
Perhaps you have decided it’s time to retire or maybe you want to sell up so you can pursue an entirely new venture. Whatever your reasons for wanting to hand over the reins, it’s important to do everything you can to make the process as seamless and straightforward as possible.
After all, selling a business is a complicated process – and it can also be a lengthy one. To prevent things from dragging on any longer than they need to, we have compiled an illuminating list of the top 5 things that can slow down the business selling process, so you’ll know exactly what to avoid!
1. Choosing the wrong time to sell your business
One of the easiest ways to make selling up more difficult is to choose a poor time to do it. While you may be keen to embrace retirement, or to embark on a new career path, it’s important to be strategic about when you offer up your company to potential acquirers.
If the market is currently doing poorly, if the economy has suffered a recent downturn, or if your business isn’t performing as well as it should, then you will find it harder to find interested buyers and this will slow down the sale process.
So, you are probably wondering, when is the best time to sell a business? In a nutshell, it’s important to choose a time when the market and your company are riding high, so the investment is as attractive as can be to would-be acquirers.
2. Setting the wrong price
Another significant obstacle can be the price you’re choosing to set. While it’s understandable that you want to receive a decent sum for the business you have so carefully and lovingly built up from scratch, if you set an unrealistic price then you’re not going to get much interest.
This is why valuations are such an important part of the M&A process. Having a thorough professional valuation of your business will give both you and prospective acquirers a good idea of what your business is worth.
Using this information, you can then set the right price and hopefully attract more interest. If you’re wondering ‘How much is my business worth?’, get in touch with Harris Acquire and we can provide you with a free valuation.
3. Lack of organisation
While you may be eager to discover how to sell a business quickly, the unfortunate truth is that selling a business can be a time-consuming and complicated journey – even without any significant obstacles in the way. Not only that, but it requires significant effort and organisation on your part.
Failing to adequately prepare your business for acquisition can really throw a spanner in the works and slow down the acquisition process.
To avoid this, make sure you start your preparations well in advance. This includes getting all your legal and financial paperwork in order and focusing on keeping your business efficient and profitable.
4. Poor negotiation skills
Once you have found one or more interested acquirers, the negotiations will begin. This is a critical part of M&A strategy, and if you have a poor negotiating style, you can really hamper your own sale.
Being inflexible and unwilling to compromise can be deeply off-putting to potential buyers. Taking this kind of attitude could even result in a possible deal falling through before you’ve reached the due diligence stage.
To prevent this from happening, it’s important that you take some time to consider the terms and conditions you would like to achieve for the sale. You should also think about the areas you would be happy to compromise on – that way, you know exactly where you stand before negotiations begin.
5. Withholding vital information
Lastly, withholding vital information is a serious matter that is sure to result in a deal falling through during the due diligence stage. It is vital that you disclose all information critical to the sale of the business or you could face serious consequences.
Whether your business has some significant unpaid debts or is embroiled in some kind of legal trouble, you need to disclose this to the buyer. Of course, the best course of action is to address those kinds of issues in your initial sale preparations, but if they remain ongoing then don’t hesitate to disclose it, even if you lose a couple of potential acquirers along the way.
Needless to say, honesty and transparency are vital to the process of selling your business
Need help with your sale?
If you are finding the prospect of selling your business a little daunting, don’t worry. Here at Harris Acquire, we have years of experience as business brokers, not to mention a real passion for helping our clients find the best deal – whether they are buying or selling.
If you would like to use our services, or if you just want to find out more about what we can offer, give us a call on 01926 757100 or email Hello@harrisacquire.com.