Selling a company is one of the biggest decisions in the life of any entrepreneur. But to get the best result and, above all, the best price for the sale, there are a number of do’s you must address and don’ts you must avoid.

3 don’ts:

1. Don´t forget to carry out a reliable valuation of your company

Failure to carry out a reliable valuation of your company means that you won’t know how much your company is actually worth. Subsequentially, you will not be able to reasonably argue a price to your potential buyers. You could be asking for a price that is above your means, or you could be oblivious to the fact that your company’s true worth is greater than what you are asking for.

2. Don’t proceed with the sale of your company without a professional strategy

A smart seller must consider why they want to sell their business and how to clearly face the selling process. If you’re not clear on this, it can be detrimental when it comes to selling your company because the buyer might notice odd things about your attitude and become concerned. They can mistake your insecurity for insincerity, leading the buyer to question you and your company. This raises their risk perception and, as a result, lowers the value they see in your company.

Having a professional strategy is crucial to a successful sale although it is difficult to do this on your own. Professional advisors can help you every step of the ensure you get the most of the sale.

3. Don´t negotiate with a single buyer

When a single buyer realizes that you are negotiating solely with them, they may take advantage of the situation. They’ll begin to play with time, extending deadlines and demanding for more and more concessions. As a result, it’s critical not to make the mistake of selling your business to the first company or investor who approaches you. This decision should not be made without a comprehensive study and analysis of all possible offers and prospects.

A professional advisor would know the best way to find the best potential buyers and would help you in this kind of negotiation.

3 do´s:

1. Do be prepared to take your company off the market and professionalize the selling process

During a company’s sale process, you may learn that there are no potential buyers or that there are buyers who are willing to pay less than your minimal price. In this circumstance, you must be prepared to take your company off the market and continue operating it, creating value for one or two more years before trying to sell it .

“A professional advisor can focus on the selling process while you put your full focus on your company, so it doesn’t lose value during the time of the operation. This is the best way to ensure you don’t miss out on available for something you’ve been working on your whole life.”

2. Do keep the interests of the minority shareholders in mind

First, agree on the sale with them and include them in the process from the beginning. A good agreement between the co-owners needs and expectative will ensure the more successful result possible in the selling process.

3. Do face the company’s intrinsic obstacles

Once personal obstacles are clarified you should face the company´s obstacles. With professional advisory you will know how to face the unavoidable steps in the selling process. Regularizing contingencies, hiring prestigious auditors, clarifying the company structure, avoiding long-term obligations, establishing a competent and cohesive workforce, and defining and documenting business procedures will be used to overcome these challenges.