Common mistakes made by Sellers

I recently had good buyers walk away from buying a business because of two common mistakes by Sellers.

The first mistake is NOT having good financials readily available.   When you bring your business to market it is imperative that you have your financials in order and readily available.  Buyers who are real buyers ready to pull the trigger on a deal will want to see a good set of financials.  When there is a delay in delivering the financials, the Buyers get nervous.   They begin to think that something is wrong or the Seller is hiding something.  Sellers need to get the financials in order ASAP when they are considering selling their business.  Compiled financials by a CPA are the minimum type of financials you should have when selling your business.  Reviewed or Audited financials are even better.

The second mistake Sellers make is to change the deal after it is agreed upon.  Once you have a deal made with the Buyer you can’t change the terms of the deal.  Buyers tend to be excited at first, but that excitement can quickly wane when a seller starts “jerking them around”.  Buyers can quickly get skittish and disappear when they don’t feel that they have been treated fairly.  You have to be fair. You have to be stern.  You have to be honest.   If you are not those 3 things, you will either not be able to sell your business, or you will not get the money you need, or worse, you may end up in court afterward.

About Rick Krebs, CPA - Business Valuations, Mergers & Acquisitions

Rick Krebs - Mergers and Acquisitions Professional, Business Broker, CPA. Rick brings a unique blend of sales, entrepreneurial, and financial experience to Business Sales Group. He began his career as a CPA, working in Nevada and Utah where valuable financial experience was gained. He uses those skills every day. He graduated with a Master’s of Science Degree and Bachelor’s Degree from Utah State University. As a business owner he started Liberty Mortgage, a mortgage bank licensed in 23 states nationwide. He eventually sold the successful company to an investor from California. He has been in the M&A space helping people sell their businesses since July, 2010. During his first year as a business broker with BRC, he listed and sold more businesses than the entire office combined. As a sale-side and buy-side advisor for Mergers and Acquisitions transactions Rick's advisory, accounting, and management skills are invaluable when advising sellers as they maneuver the intricate details of the deal through closing. Rick is also a CNA (Certified Negotiation Expert) which helps him negotiate the most favorable terms for clients in a transaction. ​ Rick was quoted by FORBES as an expert sales-side advisor who helps Sellers avoid the pitfalls of selling a business.

Posted on June 11, 2012, in Company News and Announcements. Bookmark the permalink. Leave a comment.

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