6 Business Sales Mistakes and How to Avoid Them

Selling a business is usually a once-in-a-lifetime transaction — which means most sellers are doing it for the first time. These are the six mistakes that cost business sellers the most, and how to avoid every one of them.

1. Selling with messy books

Nothing kills a business sale faster than financials a buyer can’t follow. Get your accountant to prepare clean, consistent statements for the last two to three years before you go to market.

2. Overpricing on sentiment

Years of your life went into the business — but buyers pay for earnings, not effort. Price on a defensible multiple and you’ll attract offers instead of silence.

3. Breaching your own confidentiality

Letting staff, suppliers or competitors learn of the sale too early can damage the very value you’re selling. Use confidentiality agreements and release information in stages.

4. Ignoring the lease

For most small businesses the premises lease is central to the sale. Check assignment provisions and remaining term early, and talk to the landlord before a buyer does.

5. Paying a percentage for advertising you can buy outright

A broker’s commission largely pays for access to buyers — but the platforms buyers use (Seek Business, AnyBusiness, BusinessForSale) can carry your listing for a fixed $1,495 until sold with no commission at settlement.

6. Losing momentum at contract stage

Deals cool quickly. Engage your solicitor before you list so the contract of sale, lease assignment and transfer paperwork are ready to move as soon as terms are agreed.

Read more: selling a business privately, and if property is part of the deal, selling commercial property privately.