Selling Your Business: For Sale by Owner?
The fact is when you decide to sell your business you must enlist other professionals. It will be expensive, but the investment you make will lead to a greater payoff. Consider the following when you think you can do it yourself:
· Confidentiality: This is your number one concern. You cannot put up a For Sale sign. You will need to screen and pre-qualify the buyers while controlling the confidentiality requirements and managing your business.
· Emotions: When it comes to your little slice of the American pie, you’re bound to be emotional.
· Judgment: There is no way you can view your business objectively, it is too much of you and you either under price or overprice it.
· Time: Do you have enough time to run your business and sell it at the same time? It will typically take one year and will eat-up much of your “free” time.
· Special Knowledge, Skill and Experience: Your skills are in running a business not in selling a business.
· Adversarial Relationships: You want more and the buyer wants to pay less. And-after the sale you will have to work the buyer. Your representative needs to be the go-between and keep the deal moving forward.
All business owners have a dislike of paying professional fees. You will reluctantly engage their services only when it is absolutely critical. For most owners, the sale of their business will determine their future lifestyle. You will need to have a team made up of a: Business Intermediary (the deal maker), an Attorney (legal protection) and your CPA (tax avoidance).
Remember: “The person who represents himself has a fool for a client”.
Steve Sink, CBI, M&AMI