Are you considering selling your business? Exiting a business can be difficult and time-consuming for any business owner, especially when trying to get the best price within a reasonable time frame.

While lack of preparation is one of the biggest components of sales pitfalls that entrepreneurs face, there are a wide variety of other factors to consider when looking for someone to take over your business.

At Raiff Representation, our skilled business attorneys can help you navigate the intricacies of the selling process and ensure that you receive the best offer possible, while minimizing the potential for costly mistakes in the future.

Mistake #1: Not being adequately prepared

This mistake is very common among entrepreneurs trying to sell their business, as it requires a lot of detailed preparation. Waiting to take the necessary steps to prepare for your sale can be a frustrating and costly mistake, as most business owners underestimate how long it can take. Selling a business can take anywhere from six months to two years on average, so it’s best to get a head start and be prepared should the sale opportunity present itself.

It is also important to consider other aspects of your business before putting it on the market, such as financial records, leasing agreements, staffing concerns, client commitments, long term relationships, and overall profitability. These are all factors that could influence your overall selling price.

Mistake #2: Misrepresenting your business

Honesty is the best policy. When it comes to selling your business, stretching the truth and being dishonest to attract potential buyers will only come back to hurt you in the end.

There is a huge difference between representing your business in the best light and simply twisting the truth, so it is important to distinguish between the two. Exaggerating numbers or failing to disclose business issues can be grounds for legal action, so you should avoid misrepresenting your business as this could ultimately eliminate the potential for any prospective buyers.

Mistake #3: Inaccurate Pricing

Putting your business up for sale with a price point that is too low or too high could hinder your company’s selling chances. When putting your business on the market, carefully consider your financial situation, profitability, successes and failures, liabilities, and what other businesses similar to yours are selling for.

It is common to determine the value of your business based on research from the appropriate market. During the selling process, you’ll want to be prepared to defend that pricing structure with detailed data and documentation.

Mistake #4: Not pre-qualifying buyers

Pre-qualifying buyers early in the process can save you a lot of time and effort. This helps eliminate prospects who may not follow through with their commitments, or who may not be serious about buying.

Do not share sensitive information about your company with people who have not been pre-qualified or are not legitimately considering buying your company. You can also consider a nondisclosure agreement when necessary.

Mistake #5: Not using professional legal help

You are the expert in running your business, knowing what you have to offer, and what it takes to turn the ins and outs of a company's products or services into sales. However, when it comes time to sell your business, you should seek the counsel of an experienced attorney.

If you are selling your business and want to ensure you receive the most desirable possible, Raiff Representation is the best firm for the job. Call or email us today to schedule a one-on-one consultation with a skilled business law attorney.

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