Synopses of Numbers 34 - 44 of 66 Obstacles to a Successful Business Sale
In the last issue (#26), we provided brief Synopses of Numbers 23 – 33 of 66 Obstacles to a Successful Business Sale. This issue will supply short Synopses of Numbers 34 – 44 of 66 Obstacles to a Successful Business Sale.
" Every problem has a gift for you in its hands. " Richard Bach
Synopses of Numbers 34 - 44 of 66 Obstacles to a Successful Business Sale
To view the complete list of 66 obstacles, click on this article: Issue #23 – 66 Obstacles to a Successful Business Sale.
Following are brief summaries of obstacles 34 – 44:
34) Owners Forced to Sell Due to Factors Beyond Control
If an owner fails to plan for the sale of the business and is then confronted with factors beyond control (such as illness, disability, economic downturn, etc.), the business may not be salable and there may be insufficient time to overcome obstacles that preclude the possibility of a successful sale.
35) Trying to Sell to Someone Who Doesn't Want to Buy (Competitors)
If contacted, industry buyers, such as competitors, suppliers or customers will always feign interest to enable them to learn more about your business. But generally they will not pay a fair price and the risk of a confidentiality breach is heightened considerably. Read more in this article: Issue #22 – Customers, Suppliers and Competitors as Buyer Prospects.
36) Seller Fails to Plan for Life after the Sale
Many owners do not look forward to retirement because they feel they will lose a part of themselves. In their minds, the business is the owner and the owner is the business. That type of thinking is not conducive to a successful sale, nor is it conducive to taking that first step towards developing an exit plan. Read more in this article: Issue #50 – Consider Your Post-Exit Options.
37) Seller has no Business Plan
Although your business valuation is based on past earnings, buyers are really buying future potential. Buyers need your input to have a good understanding of future growth prospects. A business plan is not only beneficial when selling your business, it will also help grow the business during your ownership term. Read more in this article: Issue #38 – Preparing to Sell Your Business – Writing the Buyer’s Business Plan.
38) Sellers Unwilling to use Professional Advisors
Abraham Lincoln wasn’t referring to business sales when he said “He who represents himself has a fool for a client”, but it surely applies. Selling your business without professional advisors is a horrible idea! Read more in this article: Issue #74 – Owners Who Try to Sell the Business Themselves.
39) Not Involving Professional Advisors Soon Enough
You will benefit by involving professional advisors early on in your business exit planning process. Read more in this article: Issue #49 – Selecting Business Exit Planning Advisors.
40) Overprotective Professional Advisors
Every business sale transaction has risks on both sides. When negotiating with buyers, tell your attorney, accountant, etc., upfront that you want to understand the risks, but you also want to make a deal. Make sure they know you intend to be the decision-maker on any contentious issues.
41) Professional Advisors' Potential Conflict of Interest
Always be aware of a professional advisor’s potential conflict of interest. For instance, your company’s attorney and CPA do not want to lose your business as an ongoing client generating recurring annual fees.
