Selling a business: What are the typical mistakes and why is consulting so important?

Common mistakes when selling a business

Without careful planning and a strategic approach, mistakes can occur that ultimately jeopardize the success of the sales process. Here are some typical problems that frequently arise throughout the process:

Lack of preparation

Those who fail to prepare adequately for the process may make serious mistakes. Careful planning, on the other hand, can increase the credibility and transparency of the company and facilitate the sales process.

Unrealistic company valuation

Unrealistic asking prices set by owners are also a common problem. They deter potential buyers and can lead to disappointment for you as the owner. In this case, you should seek a reputable business valuation.

Inadequate company presentation

First impressions count—and this also applies to how you present your company. A rough outline of your company’s key figures won’t get you very far. The most important aspects should be mentioned right at the start of your presentation.

Wrong time to sell

When is the right time to sell a company? There is no general answer to this question. Basically, you should keep in mind that selling a company can take an average of 6 to 18 months, depending on the size of the company, the industry, and the transaction structure. Ideally, the sale should take place when the company is in a healthy state.

Insufficient documentation of processes

Before a sale, a company must be examined in terms of its economic, legal, business, and tax circumstances as part of due diligence. It often happens that the documentation of such records gets lost in day-to-day business.

Lack of support Conducting the sales process independently without professional support proves difficult, and many entrepreneurs fail at it. A great deal of expertise, experience, and a broad network are necessary to avoid mistakes and achieve the optimal sales price.

Avoiding mistakes: Checklist for selling a business

It doesn’t hurt to create a checklist to record the most important points for a successful company sale.

Advantages of professional advice

Those who rely on professional advice when selling a company can benefit from a number of advantages:

Expertise and know-how A professional team of advisors is familiar with current trends, market conditions, and best practices for a successful sales process. The necessary expertise to identify potential risks and overcome potential challenges is also crucial here.

A broad network of potential investors and experts

A pool of the right contacts makes many things easier. Potential buyers who are the best fit for your company can be identified and contacted more quickly. You have the opportunity to achieve the best possible price for your life’s work.

The opportunity to have the company evaluated objectively

A team of experts can determine a realistic market value. This involves the use of sound valuation methods and techniques. Relevant factors in this context include industry trends, the competitive environment, and financial indicators.

Negotiations conducted with the necessary skill

Thanks to our extensive and long-standing experience in the field of M&A, you can benefit from the professional team’s excellent negotiating skills. This also makes it easier to resolve any potential problems that arise during the process.

Professional project management

You can rely on expert planning, coordination, and supervision of all necessary steps and deadlines. A professional project team ensures that everything runs smoothly and takes care of all administrative tasks.

A team of contacts for all relevant questions

During the sales process, you are bound to have some questions. When you hire a team of consultants, you always have a competent contact person at your side who can explain each step to you in a way that is easy to understand.

Confidentiality and discretion

You can rest assured that your data and all information relevant to the sale will be treated confidentially and only passed on to serious prospective buyers. Confidentiality and discretion are the basis for successful cooperation between an M&A consultancy and its clients.

Do you need assistance with selling your business?

Are you facing the challenge of selling your business? We would be happy to assist you. We have been providing M&A consulting services for over 20 years and can therefore support you with the necessary experience, expertise, and a broad network of experts. Make an appointment for an initial personal consultation—we look forward to hearing from you!