Do you own a business that you’ve been thinking about selling? Perhaps you’re ready to retire or to buy a new business and want to make the most of your investment.
Buying or selling a business can be an incredibly stressful process. There are so many things to think about and so many decisions to make that it’s easy to lose track of what matters most. VR San Antonio has amassed over 40 years of industry experience and today we’re sharing the top three COMMON mistakes we’ve encountered that can affect your chances of success.
Mistake #3: Failing to negotiate in good faith
Failing to negotiate in good faith when selling your business can have serious consequences. Good faith negotiation involves honest communication and a genuine effort to reach a mutually beneficial agreement. If a seller engages in bad faith negotiation, they risk damaging their reputation and potentially facing legal consequences. Buyers may be less likely to do business with a seller who is seen as untrustworthy, which can limit their ability to find future buyers. Additionally, if a court finds that a seller has engaged in bad faith negotiation, they may be required to pay damages to the buyer. It is important for sellers to approach negotiations in good faith, and to be transparent and honest throughout the process.
Mistake #2: Not getting professional help when selling or buying
If you are selling your business, not getting professional help can lead to undervaluing your business, which means you may end up selling it for less than it’s worth. You may also struggle to find potential buyers or end up dealing with legal issues, which can be complicated and time-consuming. Additionally, not having professional guidance can lead to missteps in the negotiation process, causing the deal to fall apart or end up costing you more in the long run. VR San Antonio can provide you with guidance in this area with a FREE consultation!
Mistake #1: Not getting the right advice
It’s important to find out as much as you can about the industry that your business is in before you start looking for a buyer. If you’re not familiar with the market and competition, you might end up selling for less than what your business is worth, or even worse—buy a company that doesn’t have much potential for growth. It’s also important to get an understanding of how much money is being spent on advertising in this industry and where your market stands compared to others within it.
When trying to sell or buy a business, you need to know exactly what you want in order not just to get it but also to make sure that it’s worth the investment. You may be tempted to just go with the first offer that comes along, but this can lead to trouble later on if it doesn’t meet your needs.
In conclusion, it is important to do your homework! Researching your industry before getting started with any kind of business transaction will help ensure that you don’t regret any decisions down the road. This can include reading articles online, talking with friends who work in similar industries, or even just talking with people at local networking events.
Located in Texas, VR San Antonio is a leading provider of business brokerage and M&A services to business owners and entrepreneurs. Our team of experienced brokers can help you to navigate the M&A process by preparing business valuations, packaging and positioning of your company, and screening potential buyers in order to facilitate a seamless and stress-free business transaction. VR San Antonio offers you free business valuations and requires NO up-front fees, so contact us for your FREE consultation today!