FOUR FATAL MISTAKES When Selling Your Business
Updated: Apr 14
Deciding to sell a business is a significant life decision. Who will you sell it to? What price should you be asking for? How will you negotiate the sale? If you are well-prepared, the process can be less stressful and more profitable. This article lists four common, but fatal mistakes a business owner can make during the process:
1. Failure to Maintain Confidentiality
If you let the “cat out of the bag” too early it can be dangerous! If employees know that you are selling and changes are coming, they may quit or become less productive.Competitors may use this information as a selling tool against you. Vendors may not continue to extend you favorable terms. Make sure all potential buyers sign confidentiality agreements
2. Failure to Use Proper Negotiating Techniques
Poor negotiating techniques can cost you considerably in terms of selling price, terms and other opportunities. You shouldn’t have to be the “bad guy”, an intermediary can best negotiate for you. Many times, a deal will fail to close because of poor negotiation and communication skills between the parties. Pro-Athletes (most anyway) understand the importance of a skilled negotiator. Bottom line is you need one too. At Ronald J. Axelrod & Associates, P.C. we are highly respected for our negotiating skills. Let us help you through this most important step in selling your business.
3. Failure to Prepare for Proper Due Diligence
Due diligence issues are very important to the selling process. It is imperative to be prepared and organized. You must be able to defend and substantiate representations made during the selling process. Our firm can guide you through the due diligence jungle. If your records are still in the shoe box, you will probably not get the deal done!
4. Failure to Seek the Right Professional Assistance and Consultation
There are legal, financial, marketing and other vital considerations that must be addressed in the selling process. Many decisions in the selling process should not be made without the advice of the right professionals. The wrong professional can lead you to make bad decisions. Let us help you put together the right team. Put over three decades of expertise in business law matters to work for you.
If you are thinking about selling your business, let our business law professionals at Ronald J. Axelrod & Associates in Rochester, NY, assist you throughout the entire process. We specialize in helping small business owners sell or purchase businesses. Call us at (585) 203-1020 to set up an appointment.