Top 10 Reasons Why Selling Your Own Business is a Bad Idea

Top 10 Reasons Why Selling Your Own Business is a Bad Idea

Selling your own Business is a Bad Idea

Over the years I’ve learned many things. One of which is, it’s never a good idea to try and broker your own transactions. This is true for houses, cars, boats, and yes, businesses.

The following is a list of the top 10 reasons why selling your own business is a bad idea:

  1. You are not objective – even if you have financial skills, you’ll have the tendency to overestimate the value
  2. You are too close – you will take it personally and perhaps kill the deal. Nobody likes to hear they have an ugly baby.
  3. You wont get as much value – there is a reason pro athletes & actors have agents…..because they get more money and better terms
  4. You don’t know how to arrive at fair market value – unrealistic owners are the biggest reason why deals fall through
  5. DIY selling will devour your time – you know how to run a business….this is no time to learn how to be a professional intermediary
  6. You don’t know how to recognize (or find) a qualified buyer – you need a market maker who is knowledgeable in your industry
  7. You will have a tendency to talk too much
  8. You don’t know how to read the documents and the lingo – a trained intermediary does
  9. You are in an adversarial position with the buyer
  10. You don’t know all the tax implications of your deal – it’s not always about the price, but how much you get to put in your pocket

Assessment

Is your business primed to sell for top dollar? Assess your readiness with Terry Monroe’s expert assessment!

Find Out Now