We know, your business is your baby. We’ve owned businesses too. We completely understand the blood, sweat and tears – the money and time invested – these things have value to a business seller.

The problem here is this – a business buyer doesn’t see your business the way you do. They see an investment opportunity, and as such, they are only going to be willing to pay for the numbers they can see, and the parts of the business that will give them a return on their investment.

How do you as a seller bridge this gap between what you see and what a buyer sees?

Be rational and realistic. Talk with you business broker about where they think you should be priced and then listen to their advice. The point of listing your business should be to sell it, and setting your listing price too high will keep you from ultimately reaching that goal.

Once you’ve decided on a realistic listing price and also the target number you really want for your business, stick to it.

Here’s what happens. You list your business for a completely rational price, you get a great offer from a buyer that comes close enough to your target price that you are willing to move ahead with the deal. Then you start to think, “well, if they are willing to pay this price, I bet I can get them to pay more” or “these buyers don’t understand the true value”. This last minute greedy-push-back by sellers does only one thing – it kills the deal.

It is completely normal to second guess your decision to sell and the money involved as the closing table looms in the near future, but you have to remember the numbers you decided on were good numbers, so remove your emotions from the situation and stick to them.

If you want to make it to closing and get the return on your business investment you’ve been waiting for, keep this goal in mind during negotiations. Let reality and rationality prevail.

Are you trying to sell your business, but your deals keep falling through? Are you concerned that you may have priced your business too high? Please feel free to leave us a comment or question here, and we will be happy to help you reach your goals.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com