Small business consulting firms can help you sell your business by spotlighting a few commonly overlooked aspects of the business sale process. Sometimes they can slow down turnaround time of a sale. But if you can understand these potential problems better, you will be better prepared.
Do You Have Time on Your Side?
Use an intermediary who will help with the filtering of prospects vs. “suspects.” However, the inclusion of yet another party, in addition to both the business seller and potential buyers, increases the time it takes.
Sellers are typically unaware of the time and documentation needed to compile the required Offering Memorandum. Once completed, the seller must provide both the intermediary and potential buyer more time to review. Next, they propose meetings and pricing. In the interim, owners must meet the challenge of keeping their business thriving.
Trying to Do Too Much
When a company owner is also its founder, that individual is typically makes all of the decisions. Selling business owners soon find themselves challenged to fully be a part of both the selling process and management.
Delegation to someone else, such as the Sales Manager, can be truly invaluable. Think of your top people as extremely valuable resources. They may have first-hand knowledge regarding additional concerns such as competition and potential buyers. Bringing in trusted employees to be part of the sales process can be tremendously beneficial.
Delays Due to Stockholders
When mid-sized, privately held companies are supported by minority stockholders, these individuals must participate in the selling process, however small their share may be. The business owner will need to firstly obtain their approval to sell by using the sale price and terms as influencers. Of course, issues such as competing interests, pricing disagreements, and family concerns may delay the process.
Once sellers decide upon a price that they would like to see, they sometimes find ii difficult to accept or even consider anything less. After all, a business owner likely created the company and may have a strong emotional attachment. Another factor that often interferes with a successful sale occurs when sellers instantly turn down offers because they don’t meet their desired asking price.
Cue the intermediary to come in to salvage the deal. A business broker often serves as a negotiator. He or she can work out a deal that is structured in a manner that works for all.
Call Williams & Kunkel CPA today in Flower Mound at 972-446-1040 to have a chat and get good business advice.
Source: Deal Studio