Common Problems and Solutions for Business Owners Unprepared for Selling you Company FAQ

Problem: “Processes? I just go with the flow.”
Solution: Buyers want efficiency, not chaos. Map out your key processes and identify areas for improvement. Streamlining workflows makes your business look organized and scalable, which increases appeal to buyers.

Problem: “Oh, I just assumed they’d figure it out.”
Solution: A succession plan shows potential buyers that your company can thrive without you. Start by documenting key roles and identifying any potential internal successors. This reduces risk for buyers and shows your commitment to a smooth handover.

Problem: “I’ll sell before they realize my customer count is dwindling.”
Solution: Address this issue before selling by focusing on customer acquisition and retention. A healthy, growing customer base is a key factor in business valuation. Buyers look for signs of future growth, not decline.

Problem: “Our website is from 2005, but it’s retro, right?”
Solution: First impressions matter! Update your branding and online presence to make your business look current. A strong digital footprint can add value and attract buyers, especially those looking for a company ready to scale online.

Problem: “Our website is from 2005, but it’s retro, right?”
Solution: First impressions matter! Update your branding and online presence to make your business look current. A strong digital footprint can add value and attract buyers, especially those looking for a company ready to scale online.

Problem: “Assets? Oh, I guess we do have a few trucks…”
Solution: Inventory your assets and get them professionally valued. This includes physical property, intellectual property, and equipment. Clear asset documentation gives buyers confidence in the company’s value and may even justify a higher sale price.

Problem: “All our eggs are in one big basket.”
Solution: Relying on one source of income can make buyers wary. Explore new revenue streams or diversify your customer base before selling. This reduces perceived risk and increases the potential for future growth.

Problem: “Everyone just shows up because they love working here!”
Solution: Formalize contracts to ensure continuity and reliability. Buyers want certainty, so having written agreements in place with employees and contractors reduces the chance of sudden turnover after the sale.

Problem: “I’ve been meaning to take care of those… someday.”
Solution: Buyers want a clean slate, so address any outstanding legal or compliance issues before listing. Hire a lawyer to review your situation and resolve lingering issues to prevent them from dragging down your business’s value.

Problem: “90% of our revenue comes from Client A. That’s loyalty, right?”
Solution: Buyers prefer diversified revenue sources, so work on reducing your dependence on a single client. Secure new clients to spread your risk and give buyers confidence in the business’s stability.

Problem: “Isn’t it just a handshake and a check?”
Solution: Business sales can be complex, involving negotiations over assets, shares, earn-outs, or partial buyouts. Work with an experienced broker or advisor to choose a sale structure that works best for you and attracts more serious buyers.

Problem: “I’ll just tell them we’re selling on their way out the door.”
Solution: Timing is crucial. Premature announcements can create uncertainty and lead to employee turnover, but transparency matters. Consider a strategic communication plan to inform your team when the time is right and ensure a smooth transition.