Selling a business can be hectic, stressful and time-consuming. In such circumstances, it helps to be surrounded by professionals. But is this a requirement to succeed in a successful business sale? Absolutely not! Many entrepreneurs venture into this story alone due to all sorts of considerations. They are willing to take risks and learn by doing. Nevertheless, it may be a wise choice for any entrepreneur to consider a few things before deciding to go into the adventure alone.
Does it pay to invest money in advice?
A common reason for not hiring an adviser appears to be the belief that one is wasting money and time this way. As an entrepreneur, you have probably gained a lot of knowledge and experience about your own market sector. Moreover, no one has better knowledge about the business than yourself.
Hiring a consultant can cost a lot of money, but if chosen correctly, you will recover this investment in other areas. An entrepreneur on his first business sale may lose money due to his lack of knowledge about the sales formalities, or fail to bring the negotiations to a binding agreement due to his incompetence. In such cases, it seems wise to hire someone who can facilitate the negotiations and bring the various parties to a deal.
Get the value of the business right.
A common mistake entrepreneurs make is misjudging the business value. A low estimate leads to a lot of losses and an overestimate can cause potential buyers to drop out. Therefore, it is crucial to determine the best selling price. Of course, that price is relative, as both buyer and seller have their own “best price” in mind. Determining that price depends on the estimation method used, and there is simply no handbook for that. An entrepreneur who does not understand such estimations is best to leave it to an expert.
Clarity through the fog.
The job of a business acquisition advisor is to ensure that the whole process is efficient and hassle-free. They know the typical pitfalls that can be encountered during a sale, and how best to avoid them. This avoids many additional costs, but also saves a lot of time. As a result, a deal can be completed faster, leaving the buyer less likely to change his mind during negotiations. The advisor helps the entrepreneur to keep a cool head.
What makes a good business acquisition adviser?
An advisor who knows his business is someone who listens carefully and takes the time to get to know your business. He is calm, pragmatic and does not make empty promises. They often have experience within the same market group, giving them access to a network of customers and contacts looking to buy within that sector. They should be able to review the company’s finances and make useful suggestions based on this, which can improve the value of the company, with a future sale in mind.
If the right person is chosen, a business acquisition adviser is the middle man who can make all the difference and ensure that a business sale is hassle-free. In doing so, it is not a luxury to get assistance during a stressful transition period from an expert who can shoulder much of the burden associated with a sale.