At Sunbelt Business Brokers, we take our time in completing a full valuation of the business, talking to the business owner and understanding the business finances before we suggest a price for the business for sale.
Unfortunately for many business owners in Duluth, MN that are not using Sunbelt Business Brokers or are trying to complete the sale on their own, there is a less structured and valuation-driven method used to develop the initial asking price for the business for sale.
Any type of business pricing that is not based on sound practices and actual data is ineffective. Too often it results in the business sold at a loss to the seller, which can have very serious consequences for future financial security. On the other hand, businesses that are priced too high sit on the market without buyer interest, eventually driving the price down as the seller becomes increasingly stressed to make the sale.
There are some common mistakes that we see owners make when they are trying to avoid hiring a broker for their business for sale.
No Preparation
Selling a business takes preparation. It is important to make sure contracts are in place, management teams have committed to stay after the sale and that the business itself is operating smoothly. By taking the time to get the business in order before the sale, buyers see a more accurate picture.
Not Having Answers for Buyers
Buyers will have a lot of questions about all the documentation provided. If the incomplete or inaccurate information is provided, or if profit and loss statements are not accurately presented, it will create problems. Remember, buyers will verify information and complete their own due diligence.
Not Requiring Confidentiality
Finally, and this is important, any Duluth, MN business for sale should only be sharing business-related information after confidentiality agreements have been signed and the seller is confident the buyer is interested.
Too often at Sunbelt Business Brokers, we see unrepresented sellers that make common mistakes, leading to lost sales or resulting in money left on the table at closing.
