Extra Tip when selling a Business:
Be Totally Honest
If you want to get the best possible price for your business, there’s no doubt that you must be completely honest.
Not only honest with the buyer. Or your business broker. But you have to be honest with yourself.
Before placing a business on the market you need to be brutally honest with yourself and acknowledge what the business is really worth in the market today. A business is not necessarily worth what you think it’s worth. Or what you may need to pay out all debts. It’s worth what the market will pay.
By being honest and realistic with yourself, you’ll save a lot of time and disappointment. Providing misleading, not disclosing, information, or keeping something secret doesn’t work. In fact, such tactics make the situation worse.
It’s tempting to keep some things secret from buyers. But that’s futile. They’ll probably find out all your secrets anyway. It’s a standard part of any business transaction these days that the buyer will conduct some kind of Due Diligence to verify not only the financials, but all other aspects of the business as well. In this process, the buyer will be able to really get to know all the details and workings of your business.
So it’s pointless to “cover-up”. All it does is postpone the inevitable. There are no “wood ducks” out there anymore. You will not “get lucky” and find some sucker who’ll want your business. It just does not happen.
What does work is following the simple steps outlined in the series of tips in these blogs. There are no shortcuts – but planning ahead will make selling the business much easier. And much quicker. Being honest with yourself about the worth of the business and being honest and open with potential buyers, is the only way you can achieve an outcome that will be wholly satisfactory. For both you and the buyer.
Benchmark Business Sales and Valuations