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


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