Down the road, every business owner will need to entertain the idea about selling his or her business. When the time comes, you’ll need to be ready to tackle a range of obstacles, as the selling process can be both confusing and time-consuming. This is especially true for those who haven’t had to go through the process before. Here are some of the key reasons why deal can fall apart when you’re selling your business.
Just like sellers, buyers will enter the process with a wide variety of preconceived notions about how the process should work, as well as what they consider to be “a great deal.” The psychological factors when it comes to both buying and selling a business should not be overlooked. Sellers specifically need to understand the specific wants, needs, and desires of a potential buyer, as well as their own psychology.
Even serious buyers may have highly unrealistic expectations regarding various aspects of a business. This ranges from price to opportunities for future growth. In some cases, buyers may drag their feet due to the fact that they are not quite ready or have a sense of urgency to buy a business.
Buyers can also be influenced by outside parties, which could be from friends, family members, or advisors. In short, sellers may discover that buyers might actually be several people who are forming a collective opinion regarding the business.
A seller’s own psychology can play a major role in whether or not a business is sold successfully. Many sellers start the process without fully understanding what is involved. This factor, of course, highlights the tremendous importance of working with professionals for months, if not years, before you actually place your business on the market. The professionals at American Business Acquisitions can help streamline the selling process in the greater Chicago area and help sellers understand all aspects of what is involved.
Another major obstacle is that sellers often have unrealistic expectations about both price and the time frame it takes to sell their business. It is very important to enter into the selling process with open eyes and realistic expectations in place. This includes establishing a fair price, and understanding that it could possibly take up to a year before the right buyer is found, but that is very rarely the case at ABA.
Acts of Fate
Sellers should remember that there are many “acts of fate” that could disrupt a deal. It could seem as if everything is moving along smoothly, and at the last minute a buyer isn’t able to secure the funds needed to close.
All parties should understand that until a deal is finalized, any problem can still arise. In fact, they can arise from the most unexpected direction, but it is difficult to anticipate and spot every single potential disruption. The complexity of selling a business is one of the main reasons why so many business owners opt to work with an advisor at American Business Acquisitions.
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