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.