Top 5 Mistake to Avoid when Selling Your Company
Mergers and acquisitions are a tedious process full of intricacies and pitfalls. It’s therefore quite easy to fall short and make a mistake or two. For this reason, we made a top 5 list of most prominent mistakes to avoid when selling your company.
1. Not completing a thorough company valuation – naturally, your company’s final value depends on it, so it is vitally important to fully understand how much your company costs. This requires a thorough due diligence and a professional third-party perspective. Otherwise, lack of critically important information will make you lose the upper hand in the deal.
2. Amending motivation and reasoning behind the sale of your business during the process – we always think twice before making important decisions, and it’s absolutely normal! However, this hinders the process and can plant a seed of distrust in your counterpart, which will negatively affect the final value of your business.
3. Negotiating with one buyer at a time – one step at a time rule doesn’t quite imply in this case, because approaching one buyer at a time doesn’t only limit the scope of potential buyers but will allow the counterpart more room to maneuver if they find that out.
4. Not managing the process confidentially – a lack of confidentiality during the process may lead to a leak of vital information to key players and the public. This can coincide with directors leaving the ship or raising uncertainty in the market about the future of the company.
5. Facing the sale process on your own – being a laborious process, mergers and acquisitions will take up a lot of your time. During the time period of a sale, your main priority as an owner should be maximizing the annual results and keeping a close eye on your advisory team to make sure you are informed at every step of the way.
Here at ONEtoONE, we consider every aspect and intricacy of the concurrent market environment and are known for our unique methodology for providing the best value for your business. If you want to learn more about what we do and our methodology, please visit our corporate website or contact us via this form. In case you wish to learn more about the ways you can maximize the value of your company today, read our free e-book! It’s free.
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