Selling a Business - A Business Broker discusses 10 common mistakes Sellers Brand

Selling a business is one of the most important events that occur in the life of a business owner. In many cases, the company accounts for the majority of the equity of a company. As a broker in New Jersey I met with many business owners who have tried to sell their business on their own. In other situations the owners call me before the sale, because they feel they need an experienced broker business. In both cases, I often see many errors to be corrected before going to market. Here are 10 common mistakes entrepreneurs make when selling a business.

* There is no planning for a future post-sale. I always suggest to my clients that speak to their financial advisers before selling your business. They need to understand how much you take home after taxes and it is enough to retire or to support their lifestyle.

* Not meeting with a broker. Working with a broker is not for everyone, but it's a great way to get information on how to sell your business. Most business brokers can provide information specific sector including evaluation guidelines. It also does not cost you anything.

* A realistic assessment. Too many entrepreneurs either over or under assessed value to their companies. Under considering leave money on the table as well as an assessment will reduce the number of buyers looking at your business.

* Financial Record Keeping. Many entrepreneurs have poor financial records that will affect their selling activities. Buyers want to look more serious in-depth financial performance of a business. These financial data will be needed to justify the contract price.

* Confidentiality. Most business owners who sell their companies do not want employees, customers, suppliers and competitors to know they are for sale. However, many do not use confidentiality agreements and do not take precautions until it is too late.

* Real estate leases. One of the biggest reasons occupies is breaking down due to problems with the lease real estate. Some sellers assume that a buyer will buy a business with 2 years left on their lease. Other vendors assume their landlord will write a new lease at a reasonable rate, without checking with their landlord.

* Potential. So many entrepreneurs think they can convince a buyer to pay more for the potential. I hear all the time from sellers who, if a buyer would have a couple of changes would explode sales. Buyers will pay based on the historical performance of a business and do not pay for what they can do for your business.

* Planning for a sale with key employees. In many small businesses there are certain key employees that are necessary for a smooth transition. Because of confidentiality, some vendors do not discuss a sale with these workers. In many cases this can become a serious problem when it's time to close the sale.

* Information hiding. Some sellers think they can hide some negative information on their activities by a buyer. As a broker, I always tell my clients that there are secrets that do not find a buyer. Due to the enormous amount of information available on the Internet buyers are very sophisticated and discover all that during the due diligence. Why not disclose this information in advance so you do not have a letdown at the end.

* Seller financing. Many entrepreneurs do not want to consider seller financing, and in many cases this could be a mistake. I discussed this in detail in a previous article. By offering seller financing will increase the pool buyer that will help increase the sale price.

This list is not exhaustive, but covers many of the most common mistakes owners make when selling their businesses. An experienced business broker should help you avoid these mistakes....