Typical Mistakes Made by Business Owners When Trying to Sell Their Business

Mistake #1

Trying to sell your business in the current M&A environment without the help of an experienced Sell Side Advisor is a difficult way to get to the promised land.

The Burgeoning Enterprises Solution: What we do is nuanced and complicated. From properly and accurately Valuing your Business, to creating demand from qualified buyers, having a robust list of strategic, Family Office and Private Equity Buyers, to securing a solid Letter of Intent and then working through all the legal and due diligence issues, it takes real expertise to drive the highest number and secure the best terms in 2024.  We have a strong record nationally.

Mistake #2

Lack of formal planning. This includes several critical aspects of strategically planning your sale. 

The Burgeoning Enterprises Solution: Your accountant should review and adjust your financials for accuracy as a crucial part of the planning process.  This avoids potential future problems regarding accuracy. Cleanliness and accuracy of financials are something we work hand in hand with you and your accountant to make happen.  Planning for operations to continue to run as well or better than normal, is another aspect we need to have covered while we are in the process of attracting potential buyers.  Let’s formally define your ideal outcome and what it entails to avoid losing sight of it during the process.  Additionally, there are times when a 1031 Exchange can be advantageous to our Seller-Clients.  Discuss this potential tax strategy with your accountant in detail to leverage it upon completion of your sale.

Mistake #3

Not understanding the Due Diligence Process. 

The Burgeoning Enterprises Solution: During our sales planning process we will provide you with a Due Diligence process checklist we have created over years of deal making.  You will be well prepared for the Due Diligence process working with us. Through Burgeoning Enterprises’ guidance, you will sell your business with confidence.

Mistake #4

Not having an experienced Mergers and Acquisitions attorney as part of your team is a mistake.

The Burgeoning Enterprises Solution: This is a big one.  Educating an inexperienced attorney on your sale is not what this is about.  The attorneys we work with are subject expert pros, they are experienced, and their fees are reasonable.  We can make introductions to allow you to select the attorney you are most comfortable with and who our Seller Clients and we have had multiple good deal making experiences with over the years.  Our lawyers proactively identify and negotiate key provisions in legal agreements – both for the business sale and any associated real estate – to ensure they benefit you. They also renegotiate leases when necessary.  Again, you want to work with attorneys who routinely renegotiate leases.