When you sell your business, it pays to have your expectations based in reality. But so often entrepreneurs operate under the following three misconceptions, which could derail the sale.
"THE PRICE WILL REFLECT MY SWEAT EQUITY": The amount a buyer is willing to pay will be based largely on a mathematical formula reflecting variables such as your firm's revenue, profits and growth rate. There's no bonus for guts and passion. Still, if it's any consolation, you wouldn't have achieved those numbers without your guts and passion.
"WE CAN WRAP THIS UP QUICKLY": Entrepreneurs tend to be "let's get on with it" types who underestimate how long it will take to reach a signed agreement. Every business owner interviewed for this story expressed dismay at how slowly things moved, so you should consider yourself lucky if it takes just four months. More likely, you're looking at six months to a year.
"THIS IS JUST ANOTHER BUSINESS DEAL": If you've never sold a company, you'll underestimate the power of the emotions the process can unleash. While you're immersed in the dry legal details, you might be stunned by how excited — and nervous — you feel when you receive a serious offer and realize, "Wow, I'm about to sell my company!"
Go back to: Selling Your Baby