A Complex Process Fraught with Potential Pitfalls and Problems
Even some very practically minded entrepreneurs make the mistake of viewing the process of selling a business as akin to that of marketing a house or other piece of tangible property. Compared to more common types of transactions, however, putting a business on the market and closing a deal tends to be a good deal more:
Complicated. While homeowners are expected to be honest and forthright about any issues they are aware of, business sellers have to go far deeper. Potential buyers inevitably expect to be able to look into everything from past performance to future prospects, and factors like these are just the beginning. Even the legal requirements related to transferring ownership can be far more involved than many entrepreneurs assume, and a single mistake made along the way can be devastating.
Risky. Putting a business on the market is always a big step, and it can also be one that is dangerous to the company itself. When clients, suppliers, and partners become aware that a business is for sale, they can quickly become a lot less loyal and dedicated. The knowledge that a business might be changing owners soon represents a level of uncertainly that many would rather not face, and that can drag down the company itself.
Time sensitive. Selling a business at the wrong time can also be extremely costly. While real estate markets are notoriously unpredictable and unreliable, the demand for businesses at any time can be even harder to pin down. Failing to recognize that there is a notable lack of interested buyers around at the moment has led far too many business owners to accept much too little for their companies. Only experts who can accurately assess the current conditions will be able to avoid such traps.
Seeking Out Informed Help Almost Always Makes Sense
For these reasons and others, it will generally be productive for an entrepreneur to seek out and work with a broker who understands how to sell a business. That is the most reliable way to avoid the many dangers that can otherwise make the process extremely difficult and even dangerous.