{"id":561006,"date":"2012-06-27T03:37:18","date_gmt":"2012-06-27T07:37:18","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbgreenbay\/mistakes-sellers-make\/"},"modified":"2022-01-31T12:44:38","modified_gmt":"2022-01-31T17:44:38","slug":"mistakes-sellers-make","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/mistakes-sellers-make\/","title":{"rendered":"Mistakes Sellers Make"},"content":{"rendered":"<div>\n<p><strong><b>\u2022\u00a0They neglect to run their business during the sales process.<\/strong><\/b> \u2013 The owner of a business with sales under the $20 million range can get so involved in the selling process that they neglect the day-to-day operation of the business.<\/p>\n<p><strong><b>\u2022\u00a0They don\u2019t understand the \u201creal\u201d value of their business. <\/strong><\/b>\u2013 A business may actually command a higher price than the value determined by an appraiser.\u00a0 The business may be worth more than the sum of its parts.\u00a0 A professional intermediary, along with other advisors, can answer the question of real value and help determine a \u201cgo-to-market\u201d price.<\/p>\n<p><strong><b>\u2022\u00a0They aren\u2019t flexible in structuring the transaction.<\/strong> <\/b>\u2013 In many cases, how the deal is structured is more important than the price or terms.<\/p>\n<p><strong><b>\u2022\u00a0They are not looking at the business from a buyer\u2019s perspective.<\/strong><\/b> \u2013 Buyers may look for different aspects of a business than those the seller looks for.\u00a0 For example: growth potential, management depth, customer base, etc.<\/p>\n<p><strong><b>\u2022\u00a0They start with too high a price.<\/strong><\/b> \u2013 Sellers obviously want to maximize the price they receive for their business, but today\u2019s marketplace is difficult to fool.\u00a0 A good buyer may just elect to pass because of an overly aggressive starting point.<\/p>\n<p><strong><b>\u2022\u00a0They are impatient.<\/strong><\/b> \u2013 Sellers have to understand that it can take 6 to 18 months to find a buyer and proceed through the sales process, which includes due diligence, the legal and accounting issues that must be handled, and ultimately the closing.\u00a0 However, on the flip side, the longer the deal drags, the more likely it is to fall apart.\u00a0 As the saying goes: Time is of the essence!<\/p>\n<p><strong><b>\u2022\u00a0They have insufficient or inadequate documentation. <\/strong><\/b>\u2013 Sellers should have current real estate and equipment appraisals at the ready along with any documentation a buyer might want, such as projections, business forecasts and plans, and environmental studies.\u00a0 Having all the documentation and financial records readily available will not only speed things along, but might also provide for a higher price or, even more important, save the deal.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u2022\u00a0They neglect to run their business during the sales process. \u2013 The owner of a business with sales under the $20 million range can get so involved in the selling process that they neglect the day-to-day operation of the business. \u2022\u00a0They don\u2019t understand the \u201creal\u201d value of their business. \u2013 A business may actually command [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-561006","post","type-post","status-publish","format-standard","hentry","category-selling-a-business"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/561006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/comments?post=561006"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/561006\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media?parent=561006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/categories?post=561006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/tags?post=561006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}