The Pitfalls of Selling a Business Without a Business Broker
Selling a business can be a complex and challenging process, and many business owners often consider whether they should use a broker to help them through the process or not. While it is possible to sell a business without a broker, like Commercii Advisory Services. However, there are several pitfalls that business owners should be aware of before they decide to go it alone.
Lack of Expertise and Experience
Selling a business requires a great deal of expertise and experience, including knowledge of market trends, legal requirements, and negotiating skills. Most business owners probably lack the knowledge and experience necessary to navigate the complex process of selling a business. They may also be unfamiliar with the various strategies and tactics used by potential buyers, making it difficult to achieve a successful sale.
Time-consuming Process
Selling a business can be an incredibly time-consuming process, especially for a business owner who is already juggling multiple responsibilities. Selling a business requires a significant time investment to develop marketing strategies, finding and meeting with potential buyers, and negotiating the terms of the sale. This daunting task and takes away valuable time from running the business itself.
Inadequate Valuation of Business
Business owners who go it alone often face difficulty in arriving at a fair offering price. Selling a business that has been in the family for generations is an emotional process that often leads to over valuing the business. Making a knee jerk decision to sell quickly could lead to undervaluing the business or ending up selling on unfavorable terms to the buyer. Working with a broker who will take the time to understand your business and who will honestly give you feedback on how a buyer and how a buyer might finance the purchase of your business will go will focus bring focus and clarity to developing an optimal strategy. Sometimes selling “now” isn’t the best strategy.
Limited Access and Evaluation of Potential Buyers
Business owners trying to sell their business on their own often face a lack of buyer pool and are not experienced in weeding out a quality buyer from a window shopper. Experienced brokers already have a large stable of buyers who have already been screened by the broker. It’s common for “walk in” buyers to ask sellers to sell and be their bank. While this sounds good on paper – it can quickly lead to major problems should the buyer run the business into the ground.
Potential Legal Risks
Selling a business will require the use of a qualified attorney. An experience broker will have relationships with a variety of attorneys who they can recommend based upon your industry and complexity of the transaction.
While it is possible to sell a business without Commercii Advisory Services, it is important to carefully consider the potential pitfalls mentioned above before making this decision. When you are ready to work with qualified broker to achieve a successful sale and ensure a smooth transition of ownership, call 412-266-2141 for your free consultation.
