The process of selling a business doesn’t always go smoothly, but what many sellers don’t realise is that they may actually be making the process harder for themselves. Some sellers or inexperienced agents waste time or cause problems due to poor preparation, which can put potential buyers off or cause the sale to fall through. If you’re selling a business, then you must show potential buyers that you’re serious. The best way to do this is to work with an experienced broker who can provide the support you need.
What Problems Can Occur?
The process of selling a business can come with a lot of trouble and heartache, especially if there are miscommunications or misunderstandings with the buyers. Buyers can easily be put off by sellers who are unprepared, disorganised, or reluctant to provide the information they need. Buyers might think you’re unreliable or not serious about selling, so they won’t want to make an offer. You and the buyers could also endure a lot of stress and waste time on negotiations that will fall through. Problems like these often occur when inexperienced sellers are handling things for themselves, but they can also happen if the broker or commercial agent is disorganised or lacks an understanding of the sector.
How to Show You’re Serious About Selling
1. Make Sure You Can Answer Basic Questions Quickly
Anyone who is interested in buying a business is likely to ask a lot of the same questions. Buyers will want to know key facts about the business, such as the turnover and cash flow. Buyers are also going to ask why the business is for sale and who the key customers and suppliers are. Sellers should be expecting these questions, so they should have the information on hand. If you can’t answer these questions quickly, then you’re telling potential buyers that you haven’t prepared properly for the sale.
2. Get Your Accounts Ready to Share
Any serious buyer will ask to see the books and other important financial information before they make an offer. Sellers should prepare these documents before they put the business up for sale. You and your broker should make sure that the books are up to date and well organised. You may also need to take steps to protect any sensitive information, by preparing a confidentiality agreement for potential buyers. If you don’t have your financial information ready to share, then potential buyers may see this as a sign that your books are disorganised or worry that you’re hiding something.
3. Be Available When Buyers Make Contact
Sellers should be keen to convince potential buyers to choose their business and happy to provide any information buyers need to make their decision. If buyers are always kept waiting for your responses, having to repeat their questions, or chasing you to get answers, they’re likely to give up. Buyers might think that you’re reluctant to sell or there are other issues with the sale. Buyers could also wonder whether you’re just as bad at communicating with your customers and suppliers, which could make the relationships you’ve built appear less valuable.
The Right Way to Manage a Business Sale
Working with a reliable and experienced business broker is the best way to avoid these kinds of problems, whether you are buying or selling a business. If you’re buying a business, our brokers can help you to explore your options and negotiate with the seller. If you’re selling a business, our brokers can help you prepare for the sale and ensure that potential buyers get the answers they need. We support both buyers and sellers throughout the sales process to ensure that things go as smoothly as possible for both parties.
To discuss your buying and selling needs contact our local partner Simon here. Alternatively, look up our nearest office here.