The consequences of attempting to sell your business and "getting it wrong" will almost certainly mean that you will have lost significant opportunity for a better sales price. The opportunity to seek redress for any errors, misjudgments or sharp practice on the part of the buyer, is fairly remote, even if you could afford to pursue the matter.

Remember – even experienced business people who have bought and sold businesses would not generally attempt the task without professional help.

The profile of most SME business owners will be that they have:

• Only one business
• Spent many years building that business – perhaps a working lifetime
• Not sold a business before
• No idea what their business may sell for
• No idea what is involved in selling their business

The consequences of "getting it wrong" are really drastic.

Remember also that warranties and indemnities will be required by the buyer as part of the contract. These needs to be clearly understood and challenged where necessary.

What Is My Business Worth?

This is the most common question that business owners ask. The answer is very simple and it has nothing to do with complex calculations.

Answer

Any business is worth exactly:
a) What you are prepared to sell it for – something you can determine; and
b) What someone will pay you for it – something you cannot determine

Another Warning

Never reveal to the buyer the price that you are seeking.

Let any suitable prospective buyer assess your business, subject to non disclosure agreements being in place, and then let them make their offer.

Just remember as well – most buyers will not share with you WHY they want your business – why would they? It would strengthen your position.

Never agree to something that you do not understand.