Five Mistakes To Avoid Before Selling Your Business

 

Do you want to sell your company to change activity, retire, or because it is facing economic difficulties? Then maybe it's time to part with it. To do this, you must proceed with a transfer of shares. Entrepreneurs who are too eager to sell fail to obtain the expected price. It is good to start following entrepreneurs such as Brian Bonar, who have accomplished a lot in the business world. To better prepare, here are the mistakes to avoid.

What are the Key Mistakes to Avoid?

Selling unprepared: Anticipation is one of the keys to successfully selling a business. If the transferor has not taken the time necessary to prepare this transfer or does not yet know what he will do following it, he should not yet start.

Selling a business that is not yet ready to be sold: Certain parameters may prevent the sale. Among them are non-transferable contracts. Therefore, it is necessary to identify the problems that the buyer could encounter and remedy them beforehand. The manager should categorize them.

Choose the first buyer who appears: Negotiation plays an essential role in selling your business. Negotiating with at least two buyers allows you to obtain a better selling price, suggests Brian Bonar.

Selling your business on your own: It is essential to be accompanied by a professional to sell your company. Since the transfer of a business is a long and complex operation, the transferor is interested in asking a transmission professional to promote the company to potential buyers. Being surrounded by a good team serves to anticipate problems as much as possible and solve them when they arise.

Focus only on the disposal of the business: The business's day-to-day operations must continue and should not experience a delay. The leader must focus on the company's results, as it is a key factor in determining the selling price, as per Brian Bonar. It would help if you did not relax your investment efforts in the company. Indeed, the buyer has the possibility of withdrawing or could not correspond to the expectations of the manager.

Transfer of goodwill

The transfer of goodwill is equivalent to selling all the assets that the company needs to operate. It includes tangible and intangible assets such as goods, customers, signs, furniture, tools, lease rights, administrative authorizations, etc.

Good to know: when selling a company's business, the sale price is paid to the company and not the partners. However, this amount can take the form of dividends. It is a goodwill suggestion from Brian Bonar.