The article, Mistakes to Avoid When Working With Buyers & Sellers, takes into account your team consisting of your Broker, Business Attorney, and CPA Accountant. The Buyer and Seller should also have some knowledge of the process and factors involved in the buy/sell process. Being educated and prepared on the front end is helpful once the buy/sell process begins.
- Finding a qualified buyer with funds or backing to support the deal. Do the required due diligence.
- Experienced Business Attorney and CPA Accountant part of your team. This holds true either on the buy or sell side of a transaction. The money spent is well worth the peace of mind it delivers to the Buyer or Seller.
- Too many decision makers – If you are a buyer or a seller who has multiple partners, it is important to complete the behind the scenes discussions/agreements and have one voice relaying the information.
- Earnings a Seller does not have – Owners of a business most often feel the business is worth more than the actual valuation reads. Very common misconception by owners and why it is important to maximize earnings in the years leading up to sale. A Buyer wants to see strong consistent earnings and the books do not lie.
- Stay on top of your business tax filings. If there ever was a red flag for potential buyers it is late or incomplete tax filings.
Solid execution day to day will help you eliminate and/or avoid future mistakes.