When business owners want to sell website company, many seek out the advice of a website brokerage over a traditional business brokerage that primarily deals in brick and mortar businesses. Sure, deciding that you want to sell website may be an easy decision, but there are dozens of crucial mistakes that are best to avoid, especially for someone who has not decided to use a website business broker to facilitate the process.
- Setting the Wrong Price – Price is one of the most important aspects of the business sale process and will ultimately dictate how fast the process is going to move. Setting the price too high will substantially curtail interest from the market because no one wants to pay a 5 times multiple and wait 5 years to recoup their initial investment. Before the financial crisis, businesses selling for that kind of premium were more common, but with the credit markets drying up, it’s harder to secure financing which has changed the market fundamentals for valuations in 2009 / 2010.
- Not Using a Business Broker – Many business owners who have no experience selling a business often make the mistake of trying to sell their business on their own. This can be a HUGE mistake if you are not familiar with the process as you will probably make dozens of costly mistakes that will ultimately affect the deal structure you end up with. Working with a licensed business broker can allow you to focus on running your business while they handle the entire process from preparing the company for the market to getting to a successful closing.
- Not Understanding the Process from Start to Finish – Selling a business can be a confusing and complex process that most business owners have little to no experience with. Not understanding how to protect yourself and your business during the process can leave you exposed and with a flimsy deal structure. You can only sell your business once, so it is best to work with a professional business broker who can handle the process from start to finish ensuring you end up with a better deal structure than going it alone.
- Keeping Profits Up – Just because your business is for sale, does not mean you should give anything less than 100% in maintaining operations. There is nothing worse than an apathetic owner who lets profits slide because they think it will be someone else’s responsibility soon. Trying to make as much money as possible in the 2-3 months after the business is on the market will look good to buyers and also allow for a quicker sale. No one wants to invest in a sinking ship and pay you a premium for your past success at the same time.
- Due Diligence Materials – Making sure the due diligence materials you plan on presenting during that phase are correct is probably the most important responsibility on the owner’s part. When buyers submit offers, they base those offers on the financials that were presented to them and when the number don’t line up during the due diligence phase, there is nothing that can derail a transaction faster.