Which are the principal barriers of selling a business? Do you know how to deal with them? The matter at stake is a complex process that requires the assistance of a consultant service that provides trust, transparency, and confidentiality to the business owner.
These are the three principal barriers for selling a business:
- Dealing with confidentiality.
- Giving trust to the advisor figure.
- Knowing how to find the best buyer.
Dealing with confidentiality
The desire of selling a business comes from a variety of reasons. For example, wanting to embrace a new adventure, feeling that you have “already done it all” or the tiredness of a long professional journey.
When protecting the confidentiality of selling a business we always have to understand the importance of leaving aside personal interests in communicating this decision, since these can affect business development.
It is of vital importance to know how to manage the following aspects of confidentiality when selling a business:
Confidentiality in the internal atmosphere of the business owner:
Many owners make the mistake of communicating this decision to their internal staff too soon and without the necessary cares. When this happens the probabilities of losing competitive strength increases, talented employees notice a lack of leadership and look for other professional exits and the snowball begins to grow to the point that a great business may fall apart.
Because of this, it is vital that the owner communicates this to the precise people in the correct moment. Also, a positive and good attitude should be maintained within the company, independently if the selling of the business will happen or not. This way, employees will be consistent with their good work and the rentability of the company will not be damaged.
Confidentiality in the external atmosphere of the business owner:
One of the greatest fears an owner has when thinking about selling his business is that they see their competitors as the only possible buyer of their company thanks to a lack of knowledge and information. Owners do not know about the techniques of how to manage confidentiality or strategies that allow them to find other buyers aside from their competitors. As a result, owners are paralyzed because of fear and they let pass what can be a good selling opportunity.
Lets take into account that the process of selling a business begins the moment the business owner first thinks about it. To avoid making these mistakes it is vital the support and guidance of a professional consultancy service that provides a high level of transparency and trust.
Confidentiality is just one of the principal barriers of selling a business. The owner also must know how to work with a team of advisors that are well qualified, have experience and can land a successful operation.
Giving trust to the advisor figure
There are many types of advisors out there who can be presented to the owner as facilitators, brokers, consultants, auditors etc. In most cases these so called “advisors” do not maintain an adjusted profile and that is the reason many operations do not succeed. This process requires and demands the advisor to manage techniques and knowledge that only professional M&A advisors know.
Therefore, when you think in advisors, you must seek for those whose professional nature is adjusted to what you are trying to do, in this case selling a business.
Either way, to avoid working with a pirate advisor or someone that doesn’t have the capabilities to carry out a corporate operation, listen to different financial advisors and then check out their success history in similar operations. Remember that correct guidance leads to a successful sale.
Therefore, it is important to let yourself be guided by the right advisors so you can also find the ideal buyer for your business.
The search for the best buyer and a good negotiation are key elements for a successful sell that reflects the hard work of the business owner. Not only should you find a solid offer, but also a buyer that transmits confidence and tranquility to the business owner.
This is why it is important not to make the mistake of selling the business to the first company or investor that makes an offer. The business owner should not make the decision without a previous in depth search and a good analysis of all the possible offers and opportunities.
In many occassions, finding the ideal buyer for a company can result in a long and exhausting process. For this reason, it is important to answer the following questions:
- Which are the different types of buyers?
- How to know if a company might be of interest for a buyer?
- Which are the methods for finding ideal buyers?
We invite you to know more about this area in the following article.
Overcoming the principal barriers of selling a business
Thanks to the complexity of this process, the importance of what is at stake and the dynamics that a corporative operation demands, our recomendation is to continue this process by the hand of expert advisors with enough experience and history that can help you overcome these barriers. If you are interested in selling your business contact us and we will help you.