subject: Let The Seller Beware [print this page] So you want to sell your business? And, you want to have the best price for your business for sale too? Then you have to cautious in striking the most profitable deal with the buyer.
The art of selling your going concern business involves a number of steps that have to be carefully adhered to so as to avoid a wrecked deal.
Let me begin with the first step of business valuation and how the seller can be lacking to fairly or aptly ascertain the true value of the business for sale. Business Valuation needs a thorough market research and analysis which has a proper process to it. If a person is not sure about carrying out the valuation process properly he must take help of a broker. If he wants to avoid the fee the seller can go for a friend or sibling who possesses knowledge about these things. He must be honest in presenting the actual figures to the buyer. Window dressing for over pricing the business should be avoided because sooner or later truth comes to the surface and such an unfair practice may lead to a bad deal.
Many sellers in desire of earning a high price for their business do not realize the actual market position of their business and can be unrealistic in setting the price. Over pricing and under pricing both keep potential buyers away from a business for sale.
Dishonesty in disclosure of information should be strictly avoided. Be it the facts and figures or the reason for sale of business, everything should be revealed to the buyer right in the advertisement itself.
Legal formalities should be completed at the time of making preparations to sell the business. Tax payments, clearance, etc should be done away with before the deal. If not done it leads to alteration of the deal and the buyer may lose faith and interest in the business.
Seller(s) must understand that the buyer should be able to earn enough from the business while being able to make the payment. If a business doesnt provide returns, it is impossible to attract any potential buyer.
Flexibility is very important while negotiating the price with the buyer. Some sellers are not willing to lower the price of their business, thus, hampering a possible deal. A person might just want to know if there is a potential market for his business to be sold at the price he wants. This sort of a checking spree must not be done.
Too much hurrying about in selling the business at any offered price and undermining its value is not a good thing to do. You must be satisfied with the fidelity of the buyer and also wait for a good deal that offers handsome amount for your business.
These are some basic things that should be taken care of. You understand, I talk of your benefit only from a deal!
