“For sale by owner” might be a money-saving strategy if you’re selling a house or a car. But when selling a business, it can cost you more money than you’ll save.
When selling your business, keep in mind the old adage, “A doctor who performs surgery on himself has a fool for a patient.”
In the long run, any investment you make in a selling team will lead to a greater payoff in the end.
Here’s who needs to be on your team:
• business broker or intermediary who’ll be your chief seller’s advocate
• an accountant with a track record in mergers and acquisitions
• a business transaction attorney with experience in the M&A arena.
You may also want a wealth manager to guide you about investments following the sale.
It’s the broker’s job to set the agenda and coordinate the work of the team.
He’ll probably also recommend engaging a third party business valuation specialist.
And if real estate or machinery or equipment is involved, third party appraisers will be needed to establish the current values of these assets.
In addition to coordinating the work of others, it’s the broker’s job to devise a marketing plan to sell your company for the best possible price and terms.
Your job throughout this process is to continue what you do best … operate your business.
Limit the “do it yourself” projects to those that you do well because of your experience.
It’s a good bet that selling a business is probably NOT one of them.
In the long run, any investment you make in the services of a professional selling team will lead you to a greater payoff in the end.
Eric R. Voth is a serial entrepreneur, a private investor, consultant, and writer. He is author of How to Sell Your Privately Owned Company, a Basic Guide for Independent Business Owners, Baby Boomer’s Edition. Eric and his colleagues help a business Seller prepare and groom his or her company prior to offering it for sale or merger – then guide the owner through the actual process. He became involved in this field as a result of merging his own company in 1993.